Expanding the tourism energy growth nexus: an empirical analysis within the Eurozone

This study extends the energy tourism growth discussion by adopting the concept of market segments when investigating tourism proxies. We adopt econometric procedures to identify potential structural breaks and cross-sectional dependence together with appropriate panel data model specifications. Causality tests are also processed to search for the direction of potential linkages. The rationale behind such an approach is to integrate the energy growth nexus discussion with the tourism growth nexus into one specification and investigate holistically potential impacts and causalities under a new, unobserved in relative literature set of variables. Interestingly, we offer to the relevant literature in the following ways: first, the concept of market segments regarding business and leisure tourism spending as a proxy for tourism expansion is used. Second, we also encompass internal consumption, by international and domestic visitors, instead of international receipts when searching for causalities. Third, we consider capital investment spending within the travel and tourism sector. This issue is less visible, if not unnoticed, in relevant studies since the vast majority adopt the concept of foreign investment spending. Our empirical findings confirm the conservation hypothesis, while the feedback hypothesis is also present in our specifications. Practical implications demand effective management within the tourism system to foster pro-environmental behavior and achieve efficient energy use within the economic system.