Analyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industry
This paper explores the long-term and short-term relationships between hotel business performance, energy consumption, and CO₂ emissions by applying the Vector Error Correction Model (VECM), the VEC Granger causality test, and the block exogeneity Wald test. The study is based on a sample of 121 hot...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | srp |
| Published: |
University Business Academy - Faculty of Economics and Engineering Management, Novi Sad, Serbia
2025-01-01
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| Series: | Ekonomija: teorija i praksa |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2025/2217-54582502001S.pdf |
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| Summary: | This paper explores the long-term and short-term relationships between hotel business performance, energy consumption, and CO₂ emissions by applying the Vector Error Correction Model (VECM), the VEC Granger causality test, and the block exogeneity Wald test. The study is based on a sample of 121 hotels over the period from 2015 to 2024. The results reveal a strong and statistically significant long-run relationship among the examined variables. The findings suggest that when deviations from long-run equilibrium occur-such as when hotel performance diverges from a sustainable level due to excessive energy consumption or increased CO₂ emissions-the system tends to self-correct over time. This adjustment mechanism implies that unsustainable practices eventually lead to operational setbacks, pushing performance back toward its long-term path. The results also indicate a unidirectional short-run causal relationship between hotel business performance and energy consumption, as well as a bidirectional causality between business performance and CO₂ emissions. |
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| ISSN: | 2217-5458 2620-0228 |