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...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | srp |
| Published: |
University Business Academy - Faculty of Economics and Engineering Management, Novi Sad, Serbia
2025-01-01
|
| Series: | Ekonomija: teorija i praksa |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2025/2217-54582502001S.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849410309669781504 |
|---|---|
| author | Stojanović Vojislav Radivojević Nikola Owen Abdallah M. Jahić Adnan Đorđević Darko |
| author_facet | Stojanović Vojislav Radivojević Nikola Owen Abdallah M. Jahić Adnan Đorđević Darko |
| author_sort | Stojanović Vojislav |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-88bc37106ea04f56b59581006ebdaebe |
| institution | Kabale University |
| issn | 2217-5458 2620-0228 |
| language | srp |
| publishDate | 2025-01-01 |
| publisher | University Business Academy - Faculty of Economics and Engineering Management, Novi Sad, Serbia |
| record_format | Article |
| series | Ekonomija: teorija i praksa |
| spelling | doaj-art-88bc37106ea04f56b59581006ebdaebe2025-08-20T03:35:10ZsrpUniversity Business Academy - Faculty of Economics and Engineering Management, Novi Sad, SerbiaEkonomija: teorija i praksa2217-54582620-02282025-01-0118211410.5937/etp2502001S2217-54582502001SAnalyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industryStojanović Vojislav0Radivojević Nikola1https://orcid.org/0000-0002-6137-4431Owen Abdallah M.2Jahić Adnan3Đorđević Darko4https://orcid.org/0009-0005-6600-6012Academy of Technical and Educational Vocational Studies, Niš, SerbiaAcademy of Applied Studies Šumadija, Kragujevac, SerbiaFaculty of Economics and Engineering Management, University Business Academy, Novi Sad, SerbiaFaculty of Economics and Engineering Management in Novi Sad, University Business Academy in Novi Sad, Novi Sad, SerbiaQ&A Consulting, Gornji Milanovac, SerbiaThis 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.https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2025/2217-54582502001S.pdfshort-run and long-run causalityenergy consumptionco2 emissionsbusiness performancehospitality industry |
| spellingShingle | Stojanović Vojislav Radivojević Nikola Owen Abdallah M. Jahić Adnan Đorđević Darko Analyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industry Ekonomija: teorija i praksa short-run and long-run causality energy consumption co2 emissions business performance hospitality industry |
| title | Analyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industry |
| title_full | Analyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industry |
| title_fullStr | Analyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industry |
| title_full_unstemmed | Analyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industry |
| title_short | Analyzing short-run and long-run causal relationships between energy consumption, CO2 emissions, and business performance in the hospitality industry |
| title_sort | analyzing short run and long run causal relationships between energy consumption co2 emissions and business performance in the hospitality industry |
| topic | short-run and long-run causality energy consumption co2 emissions business performance hospitality industry |
| url | https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2025/2217-54582502001S.pdf |
| work_keys_str_mv | AT stojanovicvojislav analyzingshortrunandlongruncausalrelationshipsbetweenenergyconsumptionco2emissionsandbusinessperformanceinthehospitalityindustry AT radivojevicnikola analyzingshortrunandlongruncausalrelationshipsbetweenenergyconsumptionco2emissionsandbusinessperformanceinthehospitalityindustry AT owenabdallahm analyzingshortrunandlongruncausalrelationshipsbetweenenergyconsumptionco2emissionsandbusinessperformanceinthehospitalityindustry AT jahicadnan analyzingshortrunandlongruncausalrelationshipsbetweenenergyconsumptionco2emissionsandbusinessperformanceinthehospitalityindustry AT đorđevicdarko analyzingshortrunandlongruncausalrelationshipsbetweenenergyconsumptionco2emissionsandbusinessperformanceinthehospitalityindustry |