Economic Growth and Environmental Quality: Stylist Facts and Environmental Kuznets Curve : Case of Tunisia
View Abstract View PDF Download PDF
Download VIDEO
HTML

Keywords

Environmental Kuznets Curve, Growth, Tunisia, Energy consumption, CO2 emissions, Energy.

Abstract

In this paper we studied the link between economic growth and the environment. We discussed the inverse U-shaped relationship between environmental pollutants and economic growth. First, we analyzed the long-term observation of the growth of CO2 emissions which is characterized by three phases. Second, we estimated the EKC curve for Tunisia. The results of our estimates revealed a problem of autocorrelation of errors which we solved by using the Cochran-Orcutt method. The model was corrected for ρ = 0.4. In addition, we noticed that the Durbin-Watson model without the dummy variable is better than the model that incorporates the dummy variable. This finding confirmed the existence of an inverted U-shaped CEK. Our results show that the country has not yet reached the threshold of development from which economic growth is accompanied by a reduction of pollutant emissions. More precisely, the value of GDP* is $2062,647 which is much lower than the $8,000 found by Seldon and Song (1994) characterizing the reversal point of the inverted U curve. Tunisia is therefore in the phase where an increase in GDP is accompanied by a deterioration of the environment.

https://doi.org/10.18488/journal.aefr.2019.96.724.742
View Abstract View PDF Download PDF
Download VIDEO
HTML

Abstract Video

Downloads

Download data is not yet available.