Analyzing the Long-term Effects of Tourism, FDI, GDP per Capita, and Trade on CO2 Emission in ASEAN: A DOLS Approach

Abstract

Global climate change is a critical challenge, especially in the ASEAN region. Increasing CO₂ emissions that trigger the greenhouse effect are putting pressure to balance economic growth with environmental sustainability. The influx of international tourists also contributes to energy consumption and transportation, which has a direct impact on CO₂ emissions, despite supporting the economy. This study analyzes the impact of Gross Domestic Product per capita, international tourism, trade openness, and foreign direct investment (FDI) on CO2 emission in five ASEAN countries, namely Indonesia, Malaysia, Thailand, Singapore, and Viet Nam period 2000-2019. This study used Panel Dynamic Ordinary Least Square (DOLS) for the analysis method. The estimation results indicate a positive correlation between international tourism on CO2 emissions in 5 ASEAN Countries. Then, the negative correlation between GDP, trade openness and CO2. However, the long runs correlation between FDI and CO2 emissions is insignificant.