This study aims to assess the effects of clean energy, environmental sustainability, and inward FDI on tourism growth in Malaysia data spanning from 1990 to 2019. The study employs the Bayer-Hanck cointegration test, ARDL bound testing, nonlinear ARDL, Toda-Yamamoto causality, and Fourier TY causality test. Additionally, dynamic OLS, fully-modified OLS, and CCR are employed to ensure robust coefficient testing. The study's findings demonstrate a noteworthy and favorable correlation between the utilization of clean energy, the advancement of tourism, and the subsequent rise in inward foreign direct investment (FDI). Moreover, the NARDL model reveals the complex interplay between adopting clean energy, environmental sustainability, and tourism growth. The causality tests, such as Fourier TY, offer valuable insights into the direction and intensity of the identified causal relationships. The study's implications are diverse and complex. Firstly, it highlights the crucial significance of clean energy as a catalyst for Malaysia's sustainable tourism development. Furthermore, this research offers valuable insights for policymakers and industry stakeholders seeking to leverage the economic and environmental advantages of integrating clean energy. Finally, this study contributes to the growing body of literature on the interplay between clean energy, tourism, and inward foreign direct investment (FDI), establishing a solid basis for future research in comparable settings. In conclusion, this research contributes to the enhanced comprehension of the intricate relationship between clean energy, the expansion of tourism, and inward foreign direct investment (FDI) in Malaysia. The utilization of various methodologies provides a comprehensive viewpoint on the dynamic relationships, emphasizing the potential for promoting sustainable development while simultaneously achieving economic benefits.
Concerning tourism, two lines of evidence are available in the literature, i.e., tourism's impact on macro fundamentals and determinants of tourism development. Regarding determinants, researchers have documented positive and negative associations between selected macro fundamentals and tourism development. The study's objective is to examine the impact of clean energy, foreign direct investment (FDI), education, and information and communication technology (ICT) on tourism development in Malaysia from 1990 to 2021. The study employed several econometrical techniques in investigating the empirical nexus, including the Bayer-Hancked cointegration test, ARDL Bound testing, Nonlinear ARDL, Toda-Yamamoto causality, and Fourier TY causality test. Moreover, the study employed dynamic OLS, Fully-modified OLS and CCR for the coefficient robust test. The study indicates that the utilization of renewable energy sources has the potential to alleviate the adverse environmental impacts associated with conventional energy sources. This, in turn, can enhance the appeal of tourist destinations to environmentally conscious visitors. Clean energy sources can provide tourism enterprises with cost-saving opportunities, improving profitability and ensuring long-term sustainability. Furthermore, the study reveals a noteworthy correlation between foreign direct investment (FDI) and tourism development. This implies that FDI plays a significant role in fostering tourism activities within the economy. Moreover, it has been found that education plays a crucial role in fostering tourism growth by positively influencing the quality of services and experiences offered to travelers. Finally, the study emphasizes the positive impact of information and communication technology (ICT) on the growth and advancement of the tourism industry. This is particularly evident in utilizing online booking systems, mobile applications, and immersive virtual tourism experiences.