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Trade Openness and CO 2 Emissions: Evidence from Tunisia

Haider Mahmood (), Nabil Maalel () and Olfa Zarrad ()
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Nabil Maalel: Department of Finance, College of Business Administration, Prince Sattam bin Abdulaziz University, 165 Al-Kharj 11942, Saudi Arabia
Olfa Zarrad: Department of Finance and Investment, College of Economics and Administrative Sciences, Imam Mohammad Ibn Saud Islamic University, Riyadh 11432, Saudi Arabia

Sustainability, 2019, vol. 11, issue 12, 1-14

Abstract: We investigated the asymmetrical effects of trade openness on CO 2 emissions and the environmental Kuznets curve (EKC) hypothesis in Tunisia during the period 1971–2014. The integration analysis suggests a mixed order of integration and the cointegration analysis corroborates the long- and short-run relationships. The EKC was proved true with a turning point gross domestic product (GDP) of approximately 292.335 billion constant US dollars, and Tunisia was found at the first phase of EKC. Moreover, we corroborate the asymmetrical effects of trade openness on CO 2 emissions. The effects of increasing and decreasing trade openness are found to be positive and insignificant on CO 2 emissions, respectively. The pollution haven hypothesis is found to be true in Tunisia, along with negative environmental effects associated with increasing foreign trade.

Keywords: CO 2 emissions; trade openness; asymmetry; EKC (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2019
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