A multivariate analysis of the causal flow between renewable energy consumption and GDP in Tunisia

Ousama Ben Salha and Maamar Sebri
Authors registered in the RePEc Author Service: Ousama Ben-Salha

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the causality linkages between economic growth, renewable energy consumption, CO2 emissions and domestic investment in Tunisia between 1971 and 2010. Using the ARDL bounds testing approach to cointegration, long-run relationships between the variables are identified. The Granger causality analysis, on the other hand, indicates that there is bi-directional causality between renewable energy consumption and economic growth, which supports the feedback hypothesis in Tunisia. In addition, the quantity of CO2 emissions collapses as a reaction to an increase in renewable energy consumption. These findings remain robust even when controlling for the presence of structural break. We conclude that more efforts should be undertaken to further develop a suitable infrastructure to the renewable energy sector, given its enhancing-effects on economic growth and reducing-effects on CO2 emissions.

Keywords: ARDL; Economic growth; Granger causality; Renewable energy consumption; Structural break; Tunisia. (search for similar items in EconPapers)
JEL-codes: C3 Q4 (search for similar items in EconPapers)
Date: 2013-12-29
New Economics Papers: this item is included in nep-afr, nep-ara, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: A multivariate analysis of the causal flow between renewable energy consumption and GDP in Tunisia (2014)
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