Abstract

The scope of this paper is to explore the relationship between tourism development and carbon emission in Maldives. Data used are already published data for Maldives tourism development and carbon emission. Individual Model for tourism development indicators and combined model of all the indicators were used to test the relationship. Unit root test was used to test the stationary status of the data. Empirical tests were performed using Ordinary Least square Method. Unit root results suggest that data are stationary at first differentiation. Regression results show very significant positive correlation between tourism development indicators and carbon emission. The relationship between carbon emission and tourism development shows very directional positive relationship. The results suggest growth of tourism and development of the industry is one major factor driving the carbon emission in Maldives. To reduce the carbon emission to achieve the goal of becoming the first carbon natural country, government could encourage opening of guest houses with more simulative rules by increasing the number of beds without increasing the number of resorts, increasing number of international airports, limiting domestic transfers and developing tourist sites to increase the output of the industry.

Key words: Tourism development, carbon emission, Maldives.