An assessment of the influence of clean energy and service development on environmental degradation: evidence for a non-linear ARDL approach for Tunisia

This paper investigates the nexus among renewable energy consumption, carbon dioxide emissions, economic development, and service growth in Tunisia under the linear and non-linear autoregressive distributed lags techniques and the Granger causality tests, for the 1980-2020 period. The empirical linear findings proved that renewable energy and service growth positively affect carbon emissions in the long term. The non-linear findings proved that a negative energy shock positively influences environmental quality in the long term. More prominently, in the long run, unilateral causalities from all the modeled variables to carbon emissions have been revealed. To mitigate climate change and get the economy back on track for more prosperity, the Tunisian government must develop an efficient strategy friendly to the environment and further explore the relationship between new technologies and renewable energy. Indeed, we propose to policymakers to encourage and promote the use of innovative clean technologies in the production of renewable energy.

Automated summary

This study investigates the relationship among renewable energy consumption, carbon dioxide emissions, economic development, and service growth in Tunisia using linear and non-linear autoregressive distributed lags techniques and Granger causality tests for the period of 1980-2020. The linear results indicate a positive effect of renewable energy and service growth on carbon emissions in the long term. The non-linear results show that a negative energy shock has a positive impact on environmental quality in the long term. Importantly, unilateral causality from all the modeled variables to carbon emissions is revealed in the long run. To mitigate climate change and promote economic prosperity, the Tunisian government should develop an efficient, environmentally friendly strategy and further explore the connection between new technologies and renewable energy. Indeed, policymakers are encouraged to promote the use of innovative clean technologies in renewable energy production.