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The Role of Energy and Environmental Quality in Exploring the Economic Sustainability: A New Appraisal in the Context of North African Countries

Author

Listed:
  • Sahbi Farhani

    (Department of Economics and Quantitative Methods, Higher Institute of Finance and Taxation of Sousse (ISFFS), University of Sousse, Sousse 4042, Tunisia
    QUARG UR17ES26, ESCT, Campus University of Manouba, Manouba 2010, Tunisia)

  • Mohamed Kadria

    (Department of Economics and Finance, College of Business and Economics, Qassim University, P.O. Box 6640, Buraidah 51452, Saudi Arabia
    LAREQUAD, Faculty of Economics and Management of Tunis, University of Tunis El Manar, Tunis 2092, Tunisia)

  • Yosr Guirat

    (Department of Business Administration, Tunis Business School, University of Tunis, El Mourouj 2074, Tunisia
    DEFI, Higher School of Economics and Business of Tunis, University of Tunis, Montfleury 1089, Tunisia)

Abstract

The aim of this study is to investigate the long-term relationship between real gross domestic product (GDP), energy consumption (EC), and carbon dioxide (CO 2 ) emissions using: (i) fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) estimates, to deal with the bias of endogeneity regressors and the countries’ heterogeneity, and (ii) a pooled mean group (PMG) estimator, to involve both pooling and averaging for a dynamic specification based on the auto-regressive distributed lag (ARDL) model. Regarding five North African countries (Morocco, Algeria, Tunisia, Libya and Egypt) over the period of 1971–2014, our empirical findings seem relevant in the light of economic developments, and indicate that increased energy consumption gives rise to both GDP growth and increased CO 2 emissions, as a result of more pollution. This leads us to conclude that North African countries should improve the productivity of their energy by increasing: (i) the implementation of energy-saving projects, energy conservation, energy efficiency, and energy infrastructure, while outsourcing to achieve GDP growth as well as increasing their investment in full-energy-potential projects, and (ii) the use of more renewable energy in order to mitigate emissions.

Suggested Citation

  • Sahbi Farhani & Mohamed Kadria & Yosr Guirat, 2021. "The Role of Energy and Environmental Quality in Exploring the Economic Sustainability: A New Appraisal in the Context of North African Countries," Sustainability, MDPI, vol. 13(24), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:13990-:d:705432
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    Citations

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    Cited by:

    1. Busayo Victor Osuntuyi & Hooi Hooi Lean, 2023. "Moderating Impacts of Education Levels in the Energy–Growth–Environment Nexus," Sustainability, MDPI, vol. 15(3), pages 1-18, February.
    2. Atif Jahanger & Daniel Balsalobre-Lorente & Ahmed Samour & Foday Joof & Mumtaz Ali & Turgut Tursoy, 2022. "Do Renewable Energy and the Real Estate Market Promote Environmental Quality in South Africa: Evidence from the Bootstrap ARDL Approach," Sustainability, MDPI, vol. 14(24), pages 1-17, December.

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