This study examines a trilateral relationship between transport combustion, fossils consumption and CO
emissions from the transport sector and economic growth in Tunisia from 1980 to 2007. First, we study the causality relationship between economic growth and transport combustion and fossils consumption. Empirical results of the study verify the absence of causality relationship between transport combustion, fossils consumption and economic growth in Tunisia but verify the existence of unidirectional causality running from transport combustion and fossils consumption to economic growth in the long-run. Secondly the investigation is made on the basis of the environmental Kuznets curve (EKC) hypothesis, using time series data and cointegration analysis. Carbon dioxide (CO
) is used as the environmental indicator and GDP as the economic one. The results do support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation with income turning point at about $2,646 (constant 2,000 prices). This implies that policy makers in Tunisia should consider the reconstruction of infrastructure, the development of transport energy consumption and more investment in pollution abatement expenses as a priority. It could be a feasible policy tool for Tunisia to achieve its sustainable growth in the long-run.
Keywords: energy efficiency, environmental Kuznets curve, EKC, Tunisia’s road transportation, vector error correction models, vehicle emissions