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,

Agricultural sector and economic growth in Tunisia: Evidence from co-integration and error correction mechanism

For the past two decades, Tunisia has been undertaken important structural reforms, which call in most cases for market and trade liberalization (agricultural structural adjustment program, GATT reforms, free trade area with the European Union). The private-led type of growth strategy with less government intervention has culminated these last years into a more rapid economic growth and openness. Within this context, this paper examines the agricultural sector role into the economic growth and its interactions with the other sectors using time-series co-integration techniques. We use annual data from 1961 to 2005 to estimate a VAR model that includes GDP indices of five sectors in Tunisian economy. Empirical results from this study indicate that in the long-run all economic sectors tend to move together (co-integrate). But, in the short-run, the agricultural sector seems to have a limited role as a driving force for the growth of the other sectors of the economy. In addition, growth of the agricultural output may not be conducive directly to non-agricultural economic sector in the short-run.cointegration, economic growth, agricultural sector, Tunisia

Agricultural Sector and Economic Growth in Tunisia: Evidence from Co-integration and Error Correction Mechanism

For the past two decades, Tunisia has been undertaken important structural reforms, which call in most cases for market and trade liberalization (agricultural structural adjustment program, GATT reforms, free trade area with the European Union). The private-led type of growth strategy with less government intervention has culminated these last years into a more rapid economic growth and openness. Within this context, this paper examines the agricultural sector role into the economic growth and its interactions with the other sectors using time-series co-integration techniques. We use annual data from 1961 to 2005 to estimate a VAR model that includes GDP indices of five sectors in Tunisian economy. Empirical results from this study indicate that in the long-run all economic sectors tend to move together (co-integrate). But, in the short-run, the agricultural sector seems to have a limited role as a driving force for the growth of the other sectors of the economy. In addition, growth of the agricultural output may not be conducive directly to non-agricultural economic sector in the short-run.co-integration, economic growth, agricultural sector, Tunisia, International Development, C22, O13, Q18,

Agricultural and non-agricultural outputs and energy consumption in Tunisia: empirical evidences from cointegration and causality

This short paper investigates the cointegration and causality link between energy consumption and agricultural, non-agricultural outputs (manufacturing sector and services sector) and overall gross domestic product in Tunisia for 1971-2003 period. Empirical results suggest that there is only unidirectional causality running from agricultural and non-agricultural sectors to energy consumption as well as from overall GDP growth to energy consumption. This unidirectional causality signifies a less energy dependent economy and suggests that it is sectoral growth that drives the energy consumption in Tunisia and not vice versa. Empirical results suggest also that Tunisian agricultural sector growth does not depend on energy, and high consumption of energy do not implies more productivity in the short run for this sector.energy consumption, output growth, causality, cointegration, Tunisia, Resource /Energy Economics and Policy,

Agricultural sector and economic growth in Tunisia: Evidence from co-integration and error correction mechanism

For the past two decades, Tunisia has been undertaken important structural reforms, which call in most cases for market and trade liberalization (agricultural structural adjustment program, GATT reforms, free trade area with the European Union). The private-led type of growth strategy with less government intervention has culminated these last years into a more rapid economic growth and openness. Within this context, this paper examines the agricultural sector role into the economic growth and its interactions with the other sectors using time-series co-integration techniques. We use annual data from 1961 to 2005 to estimate a VAR model that includes GDP indices of five sectors in Tunisian economy. Empirical results from this study indicate that in the long-run all economic sectors tend to move together (co-integrate). But, in the short-run, the agricultural sector seems to have a limited role as a driving force for the growth of the other sectors of the economy. In addition, growth of the agricultural output may not be conducive directly to non-agricultural economic sector in the short-run

Investigating linkages between economic growth, energy consumption and pollutant emissions in Tunisia

The aim of this study is to understand long and short-run linkages between economic growth, energy consumption and carbon emission using Tunisian data over the period 1971-2004. Cointegration procedure is used to analyze the time series properties of the series and error-correction terms were considered to test for the direction of Granger causality. 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. The short-run analysis, provide support for causality running from CO2 emissions growth to output growth, both in the short-run and the long-run. The results provide also some support of mutual causal and feedback relationship in the long-run. In addition, the results show strong evidence of causality running from output growth to energy consumption in the short-run and mutual causality in the long-run implying that Tunisia is an energy dependent economy. From a policy perspective, policy makers in Tunisia should be mindful that a persistent decline in environmental quality may exert negative externalities to the economy

Analyzing trade integration in North African markets: A border effect approach

This paper uses the border effect estimate from a gravity model to analyze the level of market trade integration among Algeria, Egypt, Mauritania, Morocco, and Tunisia from 2005-2012. We analyze total trade as well as trade in agricultural and industrial products. The border effect estimates show that crossing a national border within these North African countries induces a trade-reduction effect. The highest effect is for Algeria, with total trade being reduced by a factor of 5 in 2011-2012, while the lowest effect is for Tunisia, with the total trade being reduced by a factor of 2 in 2011-2012. Our results also show that the border effect is stable over time. The mean value masks differences that are quite substantial in market integration when considering agricultural products or industrial products, the borders effects being lower for the latter. For industrial products in 2011-2012, the highest border effect is in Tunisia, with a factor of 3.3, and the lowest border effect is for Morocco with a factor of 1.9. For agricultural products in the same period, the highest border effect is in Algeria, with a factor of 5.9, and the lowest border effect is in Egypt, with a factor of 2.9. Finally, the equivalent tariffs implied by the estimated border effects are not implausible compared to the actual range of direct protection measures. Integration of the North African market should be pursued by improving structural policies to improve trade efficiency and reap the benefits of international trade.Non-PRIFPRI1; AGRODEPMTI

LONG AND SHORT–RUN LINKAGES BETWEEN ECONOMIC GROWTH, ENERGY CONSUMPTION AND CO2 EMISSIONS IN TUNISIA

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.Economic growth, energy consumption, CO2 emissions, cointegration, generalized impulse response function, Tunisia