Trade Openness and Co<sub>2</sub>Emissions in Tunisia

Chebbi, Houssem Eddine; Olarreaga, Marcelo; Zitouna, Habib

doi:10.1142/s1793812011000314

Cited by 63 publications

(21 citation statements)

References 5 publications

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“…This validates hypothesis 1: There is a positive relationship between trading partners' incomes and bilateral CO 2 emissions. The positive impact of income on CO 2 emissions is consistent with [6,[48][49][50], while the results of FTA effects on bilateral CO 2 emission are positive but insignificant. Although the free trade agreement coefficient is statistically insignificant, it is based on a positive trend, so it can be argued that free trade agreements possibly enhance bilateral CO 2 emissions between trading countries.…”

Section: Resultssupporting

confidence: 63%

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Yao

Yasmeen

et al. 2019

Sustainability

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Free trade agreements (FTAs) have a key role in the global value chain. In the meantime, these are also disturbing the environmental balance of the world. The objective of this study is to check whether the trade is good or bad for the environments of countries that are bonded by trade agreements. This study examines the impact of FTAs on bilateral carbon emissions within the gravity framework. We find a positive impact of FTA agreements on bilateral CO2 pollution. However, in an income-based country group analysis, we find mixed evidence regarding FTAs. The analysis concerning high income countries indicates that free trade agreements are beneficial for high income countries, while, in the case of upper middle income and lower middle income countries, we find that the free trade agreements are not beneficial for their environments. These results of the effects of FTAs on bilateral CO2 pollution imply that low income countries have a greater pollution effect even after the implementation of an FTA due to lenient environmental standards. There is a need for developing countries to learn from high income countries, as their FTAs are beneficial for decreasing pollution.

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Section: Resultssupporting

confidence: 63%

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Yao

Yasmeen

et al. 2019

Sustainability

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“…However, research conducted by other authors [41][42][43][44][45] assert the opposite, showing a negative relation between the emissions of CO 2 and financial development.…”

Section: Literature Reviewmentioning

confidence: 92%

“…Shahbaz et al [42], in the case of Malaysia and Indonesia, found that even though investments in the private sector helped lower the CO 2 emissions, foreign investments caused an increased in the release of this harmful gas. Chebbi et al [43] presented how financial development negatively affects the level of pollution. Riaz's analysis in 2016 demonstrated that the increase in CO 2 emissions is directly proportional with financial development corresponding to a consumption rise.…”

Section: Literature Reviewmentioning

confidence: 99%

The Nexus between Carbon Emissions, Energy Use, Economic Growth and Financial Development: Evidence from Central and Eastern European Countries

Manta¹,

Florea

Bădîrcea

et al. 2020

Sustainability

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The aim and novelty of this study consist of estimating the nexus between CO2 (carbon dioxide) emissions, energy use, economic growth, and financial development for ten Central and Eastern European countries (CEEC) over the 2000–2017 period, starting from Environmental Kuznets Curve (EKC) theory. The Fully Modified Ordinary Least Squares (FMOLS) method was used for testing the cointegration relationship. Granger causality estimation based on the Vector Error Correction Model (VECM) and Pairwise Granger causality test were applied to identify the causality relationships between the variables and to identify the direction of causality. The implementation of the tests led to significant conclusions. In the long run, the levels of CO2 emissions and energy use do not have any influence on economic growth. Furthermore, there is a bidirectional causality among economic growth in terms of GDP and financial development variables. Thus, increasing financial development will generate more CO2 emissions and more energy use, and increasing economic growth will lead to rising financial development. In the short run, increasing financial development will generate more CO2 emissions and will lead to increased energy use and economic growth. Also, a bidirectional causality is being revealed between financial development and CO2 emissions. This indicates that financial development may help to reduce CO2 emissions.

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“…Further, he reported that economic growth is causing the investment and investment is causing trade openness. Chebbi et al [7] investigated the triangular relationship among trade openness, CO 2 emissions and economic growth in Tunisia during 1961-2005. They reported that trade openness has direct positive effects on CO 2 emissions in the long and short term and has negative indirect effects in the long term.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The EKC hypothesis has been a workhorse of the environmental literature since trade liberalization became more widespread in the 1980s. Tunisia also introduced trade liberalization in the 1980s to foster economic growth [7]. This liberalization helped expand its trade with the world at large, and with geographically close trading partners of the European Union (EU).…”

Section: Introductionmentioning

confidence: 99%

Trade Openness and CO2 Emissions: Evidence from Tunisia

2019

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We investigated the asymmetrical effects of trade openness on CO2 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 CO2 emissions. The effects of increasing and decreasing trade openness are found to be positive and insignificant on CO2 emissions, respectively. The pollution haven hypothesis is found to be true in Tunisia, along with negative environmental effects associated with increasing foreign trade.

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Trade Openness and Co₂Emissions in Tunisia

Cited by 63 publications

References 5 publications

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

The Nexus between Carbon Emissions, Energy Use, Economic Growth and Financial Development: Evidence from Central and Eastern European Countries

Trade Openness and CO2 Emissions: Evidence from Tunisia

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Trade Openness and Co2Emissions in Tunisia

Cited by 63 publications

References 5 publications

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

Free Trade Agreements and Environment for Sustainable Development: A Gravity Model Analysis

The Nexus between Carbon Emissions, Energy Use, Economic Growth and Financial Development: Evidence from Central and Eastern European Countries

Trade Openness and CO2 Emissions: Evidence from Tunisia

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Trade Openness and Co₂Emissions in Tunisia