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Trade Openness and CO 2 Emissions: Evidence from Tunisia

Author

Listed:
  • Haider Mahmood

    (Department of Finance, College of Business Administration, Prince Sattam bin Abdulaziz University, 165 Al-Kharj 11942, Saudi Arabia)

  • Nabil Maalel

    (Department of Finance, College of Business Administration, Prince Sattam bin Abdulaziz University, 165 Al-Kharj 11942, Saudi Arabia
    Ecole Supérieure des Sciences Economiques et Commerciale de Tunis, Montfleury, Université de Tunis, 4 Abou Zakaria Al Hafsi, Tunis 1089, Tunisie)

  • Olfa Zarrad

    (Department of Finance and Investment, College of Economics and Administrative Sciences, Imam Mohammad Ibn Saud Islamic University, Riyadh 11432, Saudi Arabia
    Faculté des Sciences Juridiques Economiques et de Gestion de Jendouba, Université de Jendouba, Avenue de l’Union du Maghreb Arabe, Jendouba 8189, Tunisie)

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.

Suggested Citation

  • Haider Mahmood & Nabil Maalel & Olfa Zarrad, 2019. "Trade Openness and CO 2 Emissions: Evidence from Tunisia," Sustainability, MDPI, vol. 11(12), pages 1-14, June.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:12:p:3295-:d:240032
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    10. Adebayo, Tomiwa Sunday, 2021. "Testing the EKC Hypothesis in Indonesia: Empirical Evidence from the ARDL-Based Bounds and Wavelet Coherence Approaches," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(1).
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