On the Causal Nexus of Road Transport CO2 Emissions and Macroeconomic Variables in Tunisia: Evidence from Combined Cointegration Tests

This paper investigates the causal relationship between road transportation energy consumption, fuel prices, transport sector value added and CO2 emissions in Tunisia for the period 1980-2012. We apply the newly developed combined cointegration test proposed by Bayer and Hanck (2013) and the ARDL bounds testing approach to cointegration to establish the existence of long-run relationship in presence of structural breaks. The direction of causality between these variables is determined via vector error correction model (VECM). Our empirical exercise reveals that the cointegration is present. Energy consumption adds in CO2 emissions. Fuel prices decline CO2 emissions. Road infrastructure boosts in CO2 emissions. Transport value-added also increases CO2 emissions. The causality analysis indicates the bidirectional casual relationship between energy consumption and CO2 emissions. Road infrastructure causes CO2 emissions and similar is true from opposite side in Granger sense. The bidirectional causality is also found between transport value-added and CO2 emissions. Fuel prices cause CO2 emissions, energy consumption, road infrastructure and transport value-added. This paper provides new insights to policy makers to design a comprehensive energy, transport and environment policies for sustainable economic growth in long run

On the Causal Nexus of Road Transport CO2 Emissions and Macroeconomic Variables in Tunisia: Evidence from Combined Cointegration Tests

This paper investigates the causal relationship between road transportation energy consumption, fuel prices, transport sector value added and CO2 emissions in Tunisia for the period 1980-2012. We apply the newly developed combined cointegration test proposed by Bayer and Hanck (2013) and the ARDL bounds testing approach to cointegration to establish the existence of long-run relationship in presence of structural breaks. The direction of causality between these variables is determined via vector error correction model (VECM). Our empirical exercise reveals that the cointegration is present. Energy consumption adds in CO2 emissions. Fuel prices decline CO2 emissions. Road infrastructure boosts in CO2 emissions. Transport value-added also increases CO2 emissions. The causality analysis indicates the bidirectional casual relationship between energy consumption and CO2 emissions. Road infrastructure causes CO2 emissions and similar is true from opposite side in Granger sense. The bidirectional causality is also found between transport value-added and CO2 emissions. Fuel prices cause CO2 emissions, energy consumption, road infrastructure and transport value-added. This paper provides new insights to policy makers to design a comprehensive energy, transport and environment policies for sustainable economic growth in long run

CO2 emissions, energy consumption and economic growth in Tunisia

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.CO2 emissions, Energy Consumption, Economic Growth, Tunisia, Resource /Energy Economics and Policy,

Energy Consumption, Economic Growth and CO2 Emissions in Middle East and North African Countries

This article extends the recent findings of Liu (2005), Ang (2007), Apergis et al. (2009) and Payne (2010) by implementing recent bootstrap panel unit root tests and cointegration techniques to investigate the relationship between carbon dioxide emissions, energy consumption, and real GDP for 12 Middle East and North African Countries (MENA) over the period 1981–2005. Our results show that in the long-run energy consumption has a positive significant impact on CO2 emissions. More interestingly, we show that real GDP exhibits a quadratic relationship with CO2 emissions for the region as a whole. However, although the estimated long-run coefficients of income and its square satisfy the EKC hypothesis in most studied countries, the turning points are very low in some cases and very high in other cases, hence providing poor evidence in support of the EKC hypothesis. Thus, our findings suggest that not all MENA countries need to sacrifice economic growth to decrease their emission levels as they may achieve CO2 emissions reduction via energy conservation without negative long-run effects on economic growth.Environmental Kuznets Curve, carbon dioxide emissions, energy consumption, growth

Energy consumption and foreign direct investment: a panel data analysis for Portugal

This research considers the relationship between energy consumption and foreign direct investment (FDI) for the period 1990-2011. As econometric strategy, we use unit root test and panel data. The empirical results illustrate that the income per capita and political globalization present a positive impact on energy consumption. The selected components of globalization (cultural, social and political) show that these variables promote Portuguese foreign direct investment. The econometric models also considered two control variables, trade openness and exchange rate. These proxies are positively correlated with FDI. The variables of income per capita and the squared income per capita validate the environmental Kuznets curve assumptions.info:eu-repo/semantics/publishedVersio

Financial Development, Energy Consumption and CO2 Emissions: Evidence from ARDL Approach for Pakistan

The paper explores the existence of a long run equilibrium relationship among CO2 emissions, financial development, economic growth, energy consumption, and population growth in Pakistan. ARDL bounds testing approach to cointegration is implemented to the data for 1974-2009. The results confirm a long run relation among these variables. Financial development appears to help reduce CO2 emissions. The main contributors to CO2 emissions however are: economic growth, population growth and energy consumption. Our results also lend support to the existence of Environmental Kuznets Curve for Pakistan. Based on the findings we argue that policy focus on financial development might be helpful in reducing environmental degradation.Financial Development, CO2 Emissions, Cointegration

Innovation and the environmental Kuznets curve: the case of CO, NMVOCs and SOx in the Italian regions

The paper explores the relationship between per capita income and three air pollutants, CO, NMVOCs and SOx, using a novel dataset based on the Italian regions. Given the central role of technological progress in long-term environmental problems, we empirically investigate the influence of innovation on the environmental Kuznets curve (EKC). The estimation results validate the EKC hypothesis for the three air pollutants considered. Furthermore, the influence of innovation on the inverted-U-shaped curve identified by the theoretical literature is empirically confirmed too.Air pollutants, Environmental Kuznets Curve, Italian regions, Technological Progress.

Environmental Kuznets Curve in Romania and the Role of Energy Consumption

The aim of present study is to probe the dynamic relationship between economic growth, energy consumption and CO2 emissions for period of 1980-2010 in case of Romania. In doing so, ARDL bounds testing approach is applied to investigate the long run cointegration between these variables. Our results confirm long run relationship between economic growth, energy consumption and energy pollutants. The empirical evidence reveals that Environmental Kuznets curve (EKC) is found both in long-and-short runs in Romania. Further, energy consumption is major contributor to energy pollutants. Democratic regime shows her significant contribution to decline CO2 emissions through effective implementation of economic policies and financial development improves environment i.e. reduces CO2 emissions by redirecting the resources to environment friendly projects.Economic Growth, Energy Consumption, Environment

Environmental Kuznets Curve and the role of energy consumption in Pakistan

The paper is an effort to fill the gap in the energy literature with a comprehensive country study for Pakistan. We investigate the relationship between CO2 emissions, energy consumption, economic growth and trade openness for Pakistan over the period of 1971-2009. Bounds test for cointegration and Granger causality test are employed for the empirical analysis. The result suggests that there exists long-run relationship among the variables and the Environmental Kuznets Curve (EKC) hypothesis is supported. The significant existence of EKC shows the country's effort to condense CO2 emissions and indicates a reasonable achievement of controlling environmental degradation in Pakistan. Furthermore, we find one-way causal relationship running from income to CO2 emissions. Energy consumption increases CO2 emissions both in the short and long runs. Trade openness reduces CO2 emissions in the long run but it is insignificant in the short run. In addition, the change in CO2 emissions from short run to the long span of time is corrected by about 10 percent each year.CO2 emissions, energy consumption, trade openness

Environment and economic development: determinants of an EKC hypothesis

In this paper we examine the concept of an Environmental Kuznets Curve (EKC) hypothesis in a critical way aiming to justify its existence as well as to propose policies compatible with sustainable development. For this reason, we make use of a data set on CO2 emissions for 32 countries over a 36 year time period. For this balanced panel database, we apply a number of econometric methods to estimate the income-environment relationship. Our results indicate the existence of N-shaped relationship between economic development and pollution. However we show that the turning points calculated by panel data analysis may not reveal the actual turning points valid for individual countries. In our case and using different countries from different geographical regions we found a mixture of monotonic or inverted U-shape or N-shape behaviour. Countries are heterogeneous with different stochastic regression coefficients. This implies that the use of the total N-shape income-environment relationship by policy makers may be misleading with serious policy ineffectiveness implications.Environmental Kuznets Curve; Panel Data; CO2 emissions