Tourism and temperature effects on the electricity consumption of the hospitality sector

Abstract

The EU has recently presented a strategic long-term vision for a climate-neutral economy by 2050, considering that climate change is a serious concern for Europeans. A great socio-economic transformation is necessary, affecting all economic sectors. On the one hand, the EU considers that is necessary to achieve net zero greenhouse gas emissions by 2050, on the other hand, sectors need to adapt to a warming climate. Focusing on the tourism sector, and using panel data referring to 12 Spanish Mediterranean provinces and the 1999-2014 time period, this study tests the tourist stays and temperature effects on the hospitality sector electricity consumption, by estimating extended Energy Environmental Kuznets curves (E-EKC) for the sector. The results show that the E-EKC hypothesis is not supported. Instead, electricity consumption progressively increases as tourism grows. In addition, the results indicate that temperature variables have notable influence over the electricity use, with a positive influence of global warming on electricity consumption. Finally, results also show positive relationships between overnight stays in hotels with higher star ratings and electricity use, while no significant price effects are observed. Electricity saving measures and renewable electricity generation promotion are recommended, especially in the highest energy consuming establishments.