CO2 emissions reduction in road transport sector in Tunisia

This study examines the impact of energy consumption of fuel, intensity energy of road transport, economic growth, urbanization and fuel rate on carbon dioxide (CO2) emissions in Tunisia. The investigation is made using the Vector Autoregressive (VAR) model. It analyses the influencing factors of the changes in CO2 emissions from Tunisian transport sector during the period of 1980-2014. The results show that energy efficiency and fuel rate play a dominant role in reducing CO2 emissions. Our empirical results confirm the hypothesis of Environmental Kuznets Curve (EKC) which suggests that economic development follows an inverted U-shaped pattern in relation to CO2 emissions in Tunisia. These findings are important for the relevant authorities in Tunisia in developing appropriate energy policy and planning for the transport sector.