Tourism: economic development without increasing CO2 emissions in Pakistan

Globally, the national and cultural resources of a country are major sources of attraction for tourism. Pakistan is gifted with abundant natural and cultural resources that can promote tourism. Tourism, in general, contributes to a country's economy and creates job opportunities for local communities. However, previous studies have shown that tourism can adversely affect the environment by increasing CO2 emissions generated by touristic activities. In the present study, we used data from the World Bank (1995–2014) to analyze the environmental effects of tourism in Pakistan. The parameters used in the present study were the number of tourist arrival, energy use, gross domestic product and CO2 emissions. The data was analyzed using Vector Error Correction Model, and Granger Causality Test. The results of the study showed that no parameters have a significant effect on CO2 emissions in the long-term. The number of tourist arrival has declined in recent years due to socio-political conditions in the country. However, if the political conditions improve, promoting tourism can generate employment and improve economic conditions which can be further invested in education, infrastructure, art and recreation activities. Therefore, we conclude that tourism can be a viable source of economic growth for Pakistan without harming the environment.