CO2 emissions, energy consumption and economic growth in Tunisia

The aim of this country specific study is tounderstand long and short-run linkages between economicgrowth, energy consumption and CO2 emission using Tunisiandata over the period 1971-2004. Statistical findings indicatethat economic growth, energy consumption and CO2 emissionare related in the long-run and provide some evidence ofinefficient use of energy in Tunisia, since environmentalpressure tends to rise faster than economic growth. In theshort run, results support the argument that economic growthexerts a positive “causal” influence on energy consumptiongrowth. In addition, results from impulse response do notconfirm the hypothesis that an increase in pollution levelinduces economic expansion. Although Tunisia has nocommitment to reduce Greenhouse Gas emissions, energyefficiency investments and emission reduction policies will nothurt economic activities and can be a feasible policy tool forTunisia.