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Prior empirical studies have employed various econometric estimation techniques to study the environmental effect of tourism demand. Prominently, these econometric modeling techniques implicitly assume that the environmental effect of tourism is symmetrical, which could sometimes be problematic. This study, therefore, utilized two econometric estimation techniques, namely, the Pesaran et al. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326) symmetric autoregressive distributed lag (ARDL) and Shin et al. (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In Festschrift in Honor of Peter Schmidt, pp. 281–314. New York: Springer) nonlinear ARDL (NARDL) estimation technique to disentangle the effect of tourism demand on carbon emissions in Australia. The results from the symmetric ARDL model reveal that tourism demand significantly increases carbon emissions in the long run, indicating that a 1% increase in tourism demand contributes to a 0.155% increase in carbon emissions in the long run. Contrarily, the NARDL model shows that a positive shock (an increase) in tourism demand reduces carbon emissions while a negative shock (a decrease) in tourism demand increases carbon emissions in the long run. From the NARDL estimate, a 1% increase in tourism demand is associated with a 0.220% decline in carbon emissions, while a 1% decrease in tourism demand increases carbon emissions by 0.250%. Therefore, I argue that carbon emissions depend not only on the size of tourism demand but also on the pattern — thus the increase and decline — of tourism demand. The implications of these results for policy are discussed.

This study compares the sensitivity of each household nonperforming loans (NPLs) category in Malaysia, allowing asymmetry across different household credit types, credit cards, personal uses, purchase of residential properties and purchase of transport vehicles. Differences in the impact of household debt on the Malaysian household NPLs are found evident. In the sample period from 2006 to 2018, the findings suggest an asymmetric impact of credit card debts on the household NPLs. This linkage is explained by only short-run negative changes in credit card outstanding loans. Besides that, the residential property loans behave asymmetrically in the long and short run, with higher impact sources from the negative changes. In a disaggregated NPL analysis focusing on a different type of loan portfolio, the asymmetry further enhances policy and regulation-making in managing household credit risk.

Recent studies on the relationship between exchange rates, oil prices, and economic growth in developing countries like Ghana have used linear methods, but do not account for potential asymmetries. This research investigates the intricate asymmetric effects of exchange rates, financial development, and oil prices on Ghana’s growth from 1990–2017 using a nonlinear model. The findings indicate that global oil price has asymmetric effects on short- and long-term growth, with positive price changes having different impacts than negative changes. However, there is no evidence for asymmetric long-term effects of exchange rates and financial development on growth, only short-term asymmetries. The cumulative effects of exchange rates and financial development outweigh oil prices. Recommendations include modernizing fuel efficiency, investing in renewable energy and public transit to address oil price shocks, and increasing market transparency and collaboration between major consumer and producer countries. The nonlinear model provides an evidence-based analysis of the intricate asymmetric relationships between these factors and developing country growth.

This study examines the asymmetric effect of economic policy uncertainty (EPU) on life and non-life insurance consumption in India using monthly data from April 2004–October 2020. The paper has employed a nonlinear autoregressive distributed lag (NARDL) model with a structural break. The results reveal that there exists an asymmetric effect of EPU on life insurance as well as non-life life insurance consumption. A negative relationship is found between EPU and insurance consumption in both life and non-life insurance. Based on the findings, the study suggests the policymakers to consider the asymmetric effects of EPU while formulating insurance-related policies in India.

Based on the demand-pull and cost-push theory, this study examines the relationship between foreign direct investment (FDI) and inflation nexus by using time series technique of Autoregressive Distributed Lags (ARDL). Asymmetry assumption was investigated by employing relatively advanced Nonlinear Autoregressive Distributed Lag (NARDL) method. Annual data from 1973 to 2017 has been collected from the World Bank database and DataStream. The results revealed that Bangladesh’s FDI inflow has a significant impact on the inflation rate, which augurs well for the economy. In addition, we also discover an asymmetric relationship in the long run and symmetric relationship in the short run. Several policy recommendations of these findings are provided.