Balancing Growth and Sustainability: CO₂ Emissions, Tourism, and Green Innovation in Asian Countries

Purpose: This analysis explores how LT and BT affect CO2 emissions in Asian countries and how GI moderates the trend toward sustainability in these economies. The aim is to understand the connection between various reasons for tourism and its impact on nature and to check if recent improvements in technology might reduce emissions linked to tourism. Design/Methodology/Approach: The analysis covers fifteen Asian countries from 1995 to 2022, using an unbalanced panel approach along with random effects and PSM methods. This study adds important control variables such as how much GDP each individual has, renewable energy consumption, the effectiveness of government, and the level of political stability. A high share of environmentally focused patents in the total number of applications is used to characterize green innovation. Findings: The results show that, compared to business tourism, leisure travel causes lower CO2 emissions, especially when the number of visitors is low. Despite what theory says, green innovation does not greatly reduce the link between tourism and emissions, meaning it may not be enough on its own without strong official backing. Using renewable energy is consistently associated with better pollution results, but the influence of economic growth on the environment is not always clear. Firms likely increase their reliance on energy for production during periods of political stability, so emissions tend to go up. Originality/Value: This research looks at the environmental side effects of leisure and business tourism in Asia, something that has not been well-studied previously. The research uses green innovation and rigorous statistical methods to provide unique information on how sustainable tourism evolves. The study reveals that sound policies and strong institutions are crucial, along with new technology, for managing tourism in a way that preserves nature.