Tourism and hospitality sector electricity use: evidences from 12 EU countries

Description

At the Paris Conference of the Parties (COP21) in 2015, 195 countries agreed to strengthen the global response to the threat of climate change. Along this line, the EU is committed to a 40% reduction in their domestic greenhouse gas emissions by 2030. This new target represents a significant progression beyond its existing 20% emission reduction commitment by 2020. Thus, greater efforts will be needed affecting all productive sectors in order to reduce CO2 emissions and energy consumption. In order to reach this ambitious target, new measures affecting all economic sectors would be needed. This paper focuses on the tourism sector. This aim of this study is to investigate the relationships between tourist overnight stays and the hospitality sector electricity consumption. These relationships are studied for 12 EU countries during the period 2005-2012, accordingly with the available data. With this aim, econometric panel data techniques are used in order to estimate an electricity consumption function for the hospitality sector which depends on tourism, income, price and climate variables. The Environmental Kuznets Curve hypothesis is also tested. An Energy-tourism Kuznets Curve would show that increasing earnings from tourism will bring about reduced electricity consumption from a threshold point, which could be related to the fact that more earnings could imply undertaking more energy efficiency measures.

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