TRADE OPENNESS ANDCO2EMISSIONS IN TUNISIA
Houssem Eddine Chebbi (),
Marcelo Olarreaga () and
Habib Zitouna ()
Middle East Development Journal (MEDJ), 2011, vol. 03, issue 01, 29-53
By reallocating resources among more or less polluting sectors, trade reforms affect pollution levels directly. They also affect pollution indirectly through their impact on economic activity and income levels, which then affect not only emissions, but also the demand for higher environmental standards. The sign of the direct and indirect effects is ambiguous. In other words, whether trade openness leads to more or less pollution is an empirical question. Using cointegration techniques, we disentangle the long- and short-run relationship between trade openness, income per capita andCO2emissions in Tunisia, as well as the extent of Granger causality among these variables. Results suggest that the direct effect of trade openness onCO2emissions is positive both in the short and the long run, but the indirect effect is negative at least in the long run. The overall effect is positive both in the short and long run, highlighting the importance for trade reforms to be accompanied by strong environmental policies.
Keywords: Trade openness; CO2emissions; cointegration (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers
Working Paper: Trade Openness and CO2 Emissions in Tunisia (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wsi:medjxx:v:03:y:2011:i:01:n:s1793812011000314
Ordering information: This journal article can be ordered from
Access Statistics for this article
Middle East Development Journal (MEDJ) is currently edited by Lyn Squire
More articles in Middle East Development Journal (MEDJ) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().