Abstract
Tourism transport profoundly affects economic growth, energy consumption and carbon dioxide emissions. This study is an attempt to examine the impact of international tourism transportation expenditures, energy demand, foreign direct investment inflows, trade openness and urban population on carbon dioxide emission and per capita income for the panel of 11 transition Economies, over the period of 1995-2013. The results show that per capita income escalates the carbon dioxide emission (CO2), which deteriorates the natural environment. International tourism receipts and international tourism expenditures for travel items are associated with the intensifying CO2 emission and per capita income in the region. The study confirmed the energy-led emissions, FDI-led emissions, FDI-led growth, income-led emissions, income-led energy demand, trade-led growth and trade-led energy demand. The causality results further substantiate the the tourism-led growth and FDI hypothesis in the region. Finally, the variance decomposition analysis confirmed the following results, that is, (i) per capita income is the contributor that least influences CO2 emissions, (ii) urban population influences per capita income and (iii) international tourism transportation expenditures will influence CO2 emissions and per capita income for the next 10-year period.