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Revising the Empirical Linkage between Renewable Energy Consumption and Economic Growth in Tunisia: Evidence from ARDL Model
Abstract
This paper investigates the interactive relationships between renewable energy and economic growth based on a Cobb-Douglas production function for Tunisia over the period of 1980-2011. Using an ARDL model, results show confirm the validity of the feedback hypothesis while in the short term the conservation hypothesis is supported. Based on the author's results, the Tunisian government is appealed to revise its policy toward the use of renewable energy by (i) the enforcement of the production and consumption of renewable energy to be substituted to the fossil and fuel energy and (ii) encouraging private sectors to deal with this energy subsector.
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