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Abstract
The aim of this country specific study is to
understand long and short-run linkages between economic
growth, energy consumption and CO2 emission using Tunisian
data over the period 1971-2004. Statistical findings indicate
that economic growth, energy consumption and CO2 emission
are related in the long-run and provide some evidence of
inefficient use of energy in Tunisia, since environmental
pressure tends to rise faster than economic growth. In the
short run, results support the argument that economic growth
exerts a positive “causal” influence on energy consumption
growth. In addition, results from impulse response do not
confirm the hypothesis that an increase in pollution level
induces economic expansion. Although Tunisia has no
commitment to reduce Greenhouse Gas emissions, energy
efficiency investments and emission reduction policies will not
hurt economic activities and can be a feasible policy tool for
Tunisia.