Asymmetric nexus between renewable energy, economic progress, and ecological issues: Testing the LCC hypothesis in the context of sustainability perspective

Abstract

This paper examines the load capacity curve hypothesis by the tourism and renewable energy from top tourism economies in the World. We employ the data from 2000 to 2020 and applied the panel GMM and panel quantile regression to arrive at our empirical findings. The results of the two models demonstrate the non-validity of the Load Capability Curve (LCC) hypothesis and the significant role of touristic arrival (TRA) and greener energy consumption (GEC) on the load capacity factor (LCP) by contrasting the ecological footprint per capita and bio-capacity. Furthermore, renewable and clean energy is recommended to address air pollution and climatic vulnerability. Thus, the empirical results of the current study provide acumens for policymakers of top tourism economies to consume green innovation technologies to counterbalance the environmental and socio-economic issues induced by the tourism sector without halting economic growth and sustainable tourism development. The study discusses policy-related implications for sustainable development.