Causality between Electricity Consumption and economic growth in Tunisia: policy implications

In this paper, we examine the causal relationship between Electricity Consumption (EC) and economic growth in Tunisia during 1971-2007. Empirical results of the study verify the absence of a long-term equilibrium relationship between EC and economic growth in Tunisia but verify the existence of unidirectional causality running from EC to economic growth by adopting Granger causality model. Consequently, the policy makers in Tunisia should place priority in early stages of reconstruction on building capacity additions and infrastructure development of the electric power sector as this would force the sustainable economic growth in Tunisia.