Energy Consumption and Economic Growth Nexus: Empirical Evidence from Tunisia

The paper explores the nexus between transport infrastructure (road and rail), energy consumption (oil and electricity) and economic growth in India over the period 1970-2007. Using cointegration and Granger causality test, the paper finds a unidirectional causality from transport infrastructure to economic growth, a unidirectional causality from economic growth to energy consumption and a unidirectional causality from transport infrastructure to energy consumption. The paper at the end suggests that energy and transportation policies should recognize the transport- energy consumption- growth nexus in order to maintain sustainable economic growth in the country.

CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models

This paper examines the nexus between CO2 emissions, energy consumption and economic growth using simultaneous-equations models with panel data of 14 MENA countries over the period 1990-2011. Our empirical results show that there exists bidirectional causal relationship between energy consumption and economic growth. However, the results support the occurrence of unidirectional causality from energy consumption to CO2 emissions without any feedback effects, and there exists bidirectional causal relationship between economic growth and CO2 emissions for the region as a whole. The study suggests that environmental and energy policies should recognize the differences in the nexus between energy consumption and economic growth in order to maintain sustainable economic growth in MENA region.

This paper aims to empirically analyze the relationship between energy consumption and economic growth measured by the industrial production index in Tunisia from January 1986 to December 2021. Using the Non-linear Logistic Smooth Transition Model, the results show a non-linear impact. In fact, in the first regime, where optimal energy consumption growth is lower than the threshold of 0.027, energy consumption has a significant and positive impact on economic growth evaluated at 0.715. However, in the second regime, we found a substantial and negative elasticity equal to −0.028, which shows an unfavorable effect on the growth of the industrial production index in Tunisia, especially at the threshold level higher than 0.027. Consequently, the relationship between Tunisia’s energy consumption and growth could be more stable. According to the study, energy consumption and economic growth in Tunisia have a non-linear relationship, which raises the possibility that excessive energy use may eventually harm economic performance or result in diminishing benefits. This emphasizes controlling and balancing energy consumption levels to achieve the best possible economic growth.

The paper explores the nexus between energy consumption (oil and electricity) and economic growth in the five SAARC countries over the period 1970-2006. Using cointegration and Error Correction Model (ECM), the paper finds a unidirectional short run and long run causality from oil consumption to economic growth in Bangladesh and Nepal, a unidirectional short run and long run causality from electricity consumption to economic growth in Pakistan and Sri Lanka, a unidirectional short run and long run causality from economic growth to oil consumption in India and Sri Lanka, and a unidirectional causality from economic growth to electricity consumption in India and Nepal. It also finds the bidirectional causality between electricity consumption and economic growth in Bangladesh and between oil consumption and economic growth in Pakistan. The paper at the end suggests that energy and environmental policies should recognize the differences in the energy consumption-growth nexus in order to maintain sustainable economic growth in the region.

This paper provides some insights into the linkages between energy consumption, carbon emissions and the sectoral components of output growth using Tunisian data over the period 1971 to 2005.Results of the long–run analysis do not support the neutrality hypothesis between energy consumption and sectoral output growth in Tunisia. Results from short–run dynamics indicate that linkages between energy consumption and economic growth, as well as economic growth and environmental pollution are not uniform across sectors (agriculture, industry and services). These outcomes suggest that prudent energy and environmental policies should distinguish the differences in the relationship between energy consumption and output growth by sector.

This paper examines the long run and causal relationship issues between economic growth, energy consumption and carbon emissions by using vector error correction model for the case of Tunisia within 1970-2010. Empirical results using time series data suggest an evidence of a long-run relationship between the variables at 5% significance level in Tunisia. A Granger causality analysis is conducted amongst the variables. The overall results indicate bidirectional causality between energy consumption and CO2 emissions and a unidirectional causality running from pollutant emissions to economic growth. But there is no direct relation between energy consumption and economic growth. Thus, our results reveal that in short term energy conservation policies, such as rationing energy consumption have no effect on the real output growth of Tunisia.

This paper examines the long run and causal relationship issues between economic growth, energy consumption and carbon emissions by using vector error correction model for the case of Tunisia within 1970-2010. Empirical results using time series data suggest an evidence of a long-run relationship between the variables at 5% significance level in Tunisia. A Granger causality analysis is conducted amongst the variables. The overall results indicate bidirectional causality between energy consumption and CO2 emissions and a unidirectional causality running from pollutant emissions to economic growth. But there is no direct relation between energy consumption and economic growth. Thus, our results reveal that in short term energy conservation policies, such as rationing energy consumption have no effect on the real output growth of Tunisia.

An ARDL approach to the CO2 emissions, renewable energy and economic growth nexus: Tunisian evidence

This study reassesses the causal relationships between energy consumption and economic growth in 18 Sub-Saharan Africa countries over the period 1980-2011. The Panel Unit Root Test results show that variables (both exogenous and endogenous) are stationary at their first difference with individual effects and individual linear trends, while the results of panel co-integration tests show that energy consumption and economic growth do have a stable long-run equilibrium relationship. There is unidirectional causality from energy consumption to economic growth in East and the Southern Africa Sub-region, which supports the growth hypothesis. As a result, the related authorities in the regions should take a special interest in different sources of energy and invest more in this sector, make suitable policies in this regard and find new alternative and cheap sources of energy. But, there is no causality between energy consumption and economic growth in Central and the West Africa Sub-region, which is in line with the neutrality hypothesis. In other words, both energy consumption and economic growth are neutral with respect to each other. Our results confirm the inconclusive nature of a causality relationship between energy consumption and economic growth.

Time-varying analysis of CO2 emissions, energy consumption, and economic growth nexus: Statistical experience in next 11 countries

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.

(ProQuest: ... denotes formulae omitted.)1. INTRODUCTIONThe relationship between energy consumption, foreign direct investment as well as energy consumption and economic growth has been the subject of considerable academic research over the past few decades (Omri and Kahouli, 2014). Several studies have focused on different countries, time periods, modeling techniques and different proxy variables which have been used to determine the links between FDI inflows, energy consumption and economic growth. Roughly, we can categorize past studies into three lines of research.The first line focuses on the relationship between energy consumption and economic growth. The relationship between energy consumption and economic growth has become a hot topic in environmental science and energy economics (Kraft and Kraft, 1978). A large volume of empirical research from the last two decades has found that economic growth and energy consumption may be jointly determined (e.g. Omri, 2013; Ahmed and Azam, 2016). Most of the empirical results indicated that higher economic growth requires more energy consumption (see, inter alia, Glasure, 2002; Ghali and El-Sakka, 2004; Akinlo, 2008; Apergis and Payne, 2009; Omri, 2013; Achour and Belloumi, 2016). They also indicated that economic growth can indeed cause increases in energy consumption. Moreover, more efficient energy use needs a higher level of economic growth (e.g. Chan and Lee, 1996; Aqeel and Butt, 2001; Wei, 2002; Halicioglu, 2007; Chang et al., 2009; Shabbir et al., 2014; Saidi and Hammami, 2015; Jammaz and Aloui, 2015; Komal and Abbas, 2015; Iyke, 2016).The second line of research investigated the correlation between the FDI inflows and economic growth has been subject to rigorous research for years. According to the FDI-led growth hypothesis, FDI inflows can stimulate growth for the host countries by increasing the capital stock, creating new job opportunities, and easing the transfer of technology (see, inter alia, Borensztein et al., 1998; De Gregorio, 2003; De Mello, 1997; Ekanayake et al., 2003; Tsang and Yip, 2007; Omri and Kahouli, 2013; Abbes et al., 2015; Abdouli and Hammami, 2015). In turn, higher economic growth creates new investment opportunities in the host country and can also cause larger inflows of FDI (e.g. Tsai, 1994; Rodrik, 1999; Kim and Seo, 2003; Mah, 2010; Anwar and Sun, 2011; Omri and Kahouli, 2014; Omri et al., 2015).The third line of research examined the link between foreign direct investment and energy consumption. Several studies have found that the FDI inflows induce energy consumption through the expansion of industrialization, transportation and manufacturing sector development while energy consumption is required to support the manufacturing process (e.g. Mielnik and Goldemberg, 2000; Mielnik and Goldemberg, 2000; Tang, 2009; Sadorsky, 2010; Bekhet and Othman, 2011; Omri and kahouli, 2014; Doytch and Narayan, 2016).The main objective of this paper is to investigate the relationship between FDI inflows, energy consumption, and economic growth for a panel of 17 MENA countries over the 1990-2012 period. We used the simultaneous equation model based on structural modeling to produce new evidence on the links between FDI inflows, energy consumption and economic growth. The introduction of the function of Cobb-Douglas production framework helped us to explore the causal relationships between the fallowing variables: FDI inflows, energy consumption, and economic growth in a growth framework.The contribution of this paper to the existing literature is expressed by giving the first integrated approach to examine the three-way linkages between FDI inflows, energy consumption and economic growth in the MENA region. Particularly, this paper uses three structural equation models, which allow us ne to simultaneously examine the impact of (i) economic growth and energy consumption on FDI inflows (ii) economic growth and FDI inflows on energy consumption (iii) energy consumption and FDI inflows on economic growth. …

The objective of this article is to study the relationship between public expenditure, energy consumption and economic growth during the period of COVID-19 while highlighting a comparative study between the cartographic spatial distribution analysis and empirical validation. In this framework, we tried to present in a spatial distribution mapping for the case of Tunisia while showing the allocation and distribution of public expenditure between several necessary headings such as basic social items and energy consumption during the period from 1990 to 2018.

The aim of this document is to investigate the dynamic relationship between economic growth, renewable energy consumption, energy consumption and CO2 emissions in Tunisia over the period 1990–2015. Unit root tests and co-integration test was used in order to detect the order of stationary and to test the existence long run links between the used variables. We apply the Granger causality test and VECM model to discover the short and long run links between the variables. Results have shown a bidirectional causal relationship between energy use and CO2 emissions. Economic growth affects CO2 emission in the short and long run. While there is a unidirectional links running from energy use to economic growth at short run. The paper shares best practices from Tunisia in terms of efficient use of renewable energy policy enablers, which may be contextualized in other emerging economies in order to keep sustainability and to achieve the green economy.