Long and Short–Run Linkages Between Economic Growth, Energy Consumption and CO2 Emissions in Tunisia

Abstract

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.