Environmental Impact of Urbanization, Bank Credits, and Energy Use in the UAE—A Tourism-Induced EKC Model

The United Arab Emirates (UAE) has developed rapidly into one of the highest per capita income nations globally. travel and tourism sector is a central contributor to Gross Domestic Product (GDP), employment, foreign exchange earnings, country’s economic diversification strategy. However, rapid growth increase in international tourist arrivals are also major contributors carbon emissions long-term environmental challenges. In this context, we employed tourism-induced Environmental Kuznets Curve (EKC) model for UAE from 1984 2019. study applied an Autoregressive Distributed Lag (ARDL) determine marginal impact related variables, namely, bank credits private sector, urbanization, energy use, on CO2 emissions. Pesaran bounds test indicated redundancy short run estimates. long-run coefficients confirmed EKC hypothesis inverted U-shape income, along with degradation due financial development. Notably, urbanization use highlighted positive steps taken by government. Granger causality tests unidirectional association GDP, credits, consumption Importantly, had bidirectional dioxide levels. This first apply UAE, findings have important implications policymakers practitioners. results highlight need balance targets sustainable through adoption ‘green’ standards. indicate potential importance efforts boost green investments implement clean energy-related technologies.