The impact of energy efficiency and economic productivity on CO2 emission intensity in Portuguese tourism industries

• Decomposition analysis of CO2 emissions
• Five effects in five tourism subsectors
• Robust econometric results

This study employs the decomposition analysis of CO2 emissions for the period from 2000 to 2012. This technique computes five effects that drive changes in CO2 emissions in five subsectors of the Portuguese tourism industry. The energy over fixed capital, the capital over labour productivity, and the tourism intensity are the most important effects in accommodation, food and beverage services. The carbonisation index constitutes an important effect in transports. The capital over labour productivity intensity effect has the strongest influence, while the carbonisation index exerts a positive influence upon CO2 emissions in tour operators and travel agencies. The energy over gross fixed capital and tourism intensity effects predominate in cultural, sports and recreational services. The results of the econometric analysis further confirm the statistical significance of the aforementioned effects. Policy recommendations are provided.