Revisiting the Kuznets curve hypothesis for Tunisia : carbon dioxide vs. ecological footprint

Abstract

The purpose of this study is to examine the validity of the EKC hypothesis for Tunisia for the period from 1965 to 2013 by using the CO2 emissions and the Ecological footprint as proxies for environmental degradation, with the latter being considered in the literature as a more inclusive indicator. The findings of the estimation stipulate a U – shaped curb between CO2 emissions and real per capita GDP meaning that the EKC hypothesis is not valid for this period in Tunisia. However, when using the EF as a proxy for environmental degradation, the results indicate that the EKC hypothesis is valid for Tunisia. The results have significant policy implications, except for the fact that the use of only the CO2 emissions as a proxy for environmental degradation would provide misleading direction to policymakers. The confirmation of the EKC hypothesis implies that the country’s policies should be persistent in aiming to improve overall environmental quality.