Towards sustainability: Dynamic nexus between carbon emission and its determining factors in Mexico

Global climate change, aggravated by greenhouse gas (GHG) emissions, particularly emissions from carbon dioxide (CO2), poses significant threats to the environment, development, and sustainability. Mexico is a prominent tourist country experiencing continuous economic growth, rapid urbanization, and agricultural productivity which is causing higher energy consumption and CO2 emissions. The current research explores the dynamic effects of economic growth, fossil fuel energy use, renewable energy use, urbanization, tourism, and agricultural productivity on CO2 emissions in Mexico. Time series data from 1990 to 2019 were analyzed using the Dynamic Ordinary Least Squares (DOLS) method. According to the estimations, a 1% rise in economic growth, fossil fuel energy use, urbanization, and tourism will raise CO2 emissions by 0.45%, 1.77%, 0.10% and 0.04%. Furthermore, a 1% increase in renewable energy consumption and agricultural productivity may result in reductions in CO2 emissions of 0.66% and 0.20%. This article put forward policy recommendations in the areas of low-carbon economy, promoting renewable energy use, sustainable urbanization, eco-friendly tourism, and climate-smart agriculture which would ensure environmental sustainability by reducing emissions in Mexico.