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Trade Openness And Co2 Emissions In Tunisia

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  • HOUSSEM EDDINE CHEBBI

    ()
    (LEGI-Polytechnic School of Tunisia, Tunisia; Faculté des Sciences Economiques et de Gestion de Nabeul (FSEGN), Campus Universitaire Mrezgua, 8000, Nabeul, Tunisia)

  • MARCELO OLARREAGA

    ()
    (University of Geneva, Switzerland; CEPR, London, UK)

  • HABIB ZITOUNA

    ()
    (LIM(MES)-Polytechnic School of Tunisia, Tunisia; FSEGN — University of Carthage, Tunisia)

Abstract

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 and CO2 emissions in Tunisia, as well as the extent of Granger causality among these variables. Results suggest that the direct effect of trade openness on CO2 emissions 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.

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Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.

Volume (Year): 03 (2011)
Issue (Month): 01 ()
Pages: 29-53

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Handle: RePEc:wsi:medjxx:v:03:y:2011:i:01:p:29-53

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Keywords: Trade openness; CO2 emissions; cointegration;

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Cited by:
  1. Mohamed El Hedi Arouri & Adel Ben Youssef & Hatem M'Henni & Christophe Rault, 2012. "Energy Consumption, Economic Growth and CO2 Emissions in Middle East and North African Countries," CESifo Working Paper Series 3726, CESifo Group Munich.
  2. Ben Jebli, Mehdi & Ben Youssef, Slim, 2013. "The environmental Kuznets curve, economic growth, renewable and non-renewable energy, and trade in Tunisia," MPRA Paper 52127, University Library of Munich, Germany.
  3. Zaman, Rubaiya, 2012. "CO2 Emissions, Trade Openness and GDP Percapita : Bangladesh Perspective," MPRA Paper 48515, University Library of Munich, Germany.
  4. Sahbi Farhani & Anissa Chaibi & Christophe Rault, 2014. "A study of CO2 emissions, output, energy consumption, and trade," Working Papers 2014-056, Department of Research, Ipag Business School.
  5. repec:ipg:wpaper:201415 is not listed on IDEAS
  6. Farhani, Sahbi & Chaibi, Anissa & Rault, Christophe, 2014. "CO2 emissions, output, energy consumption, and trade in Tunisia," Economic Modelling, Elsevier, vol. 38(C), pages 426-434.
  7. AROURI, Mohamed El Hedi & BEN YOUSSEF, Adel & M'HENNI, Hatem & Rault, Christophe, 2012. "Empirical Analysis of The EKC Hypothesis for Sulfur Dioxide Emissions in Selected Middle East and North African Countries," MPRA Paper 46185, University Library of Munich, Germany, revised 2012.

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