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Renewable and Sustainable Energy Reviews
journal homepage: www.elsevier.com/locate/rser
Renewable energy consumption, International trade, oil price and economic
growth inter-linkages: The case of Tunisia
Riadh Brini
a
, Mohamed Amara
b,
⁎
, Hatem Jemmali
c
a
Faculty of Economic Sciences and Management of Nabeul, University of Carthage, and International Interaction Research Center (LIEI), University of
Tunis El-Manar, Tunisia
b
Higher School of Economic and Commercial Sciences of Tunis, University of Tunis, Tunisia
c
Higher Institute of Accounting and Business Administration, University of Manouba, and Laboratory for Research on Quantitative Development Economics
(LAREQUAD), University of Tunis El-Manar, B.P. 248 El Manar II, 2092 Tunis, Tunisia
ARTICLE INFO
Keywords:
Renewable energy consumption
International trade
Oil price
Economic growth
ARDL
Tunisia
ABSTRACT
This paper contributes to the small but growing literature on the linkages between renewable energy
consumption, international trade, oil price and economic growth. It aims to investigate such dynamic
relationships using the bounds testing approach to cointegration and the ARDL methodology for Tunisia over
the period 1980–2011. The main empirical findings reveal the presence of a bidirectional relationship between
renewable energy consumption and international trade in the short-run. Indeed, an increase in oil price may
imply an increase of renewable energy consumption. Furthermore, a unidirectional relationship between
renewable energy and oil price is proven in the short-run.
1. . Introduction
Over the past four decades, the lion's share of the literature on
energy consumption has focused on the causal relationship between
energy consumption and economic growth. Four testable hypotheses
can be distinguished to examine such relationship: growth, conserva-
tion, feedback, and neutrality hypothesis [2,30,41,38]. The growth
hypothesis regards economy strongly linked to energy. According to
this assumption, any reduction in energy use will lower automatically
economic growth. Under the second hypothesis (conservation hypoth-
esis), it's assumed that unidirectional causality runs only from eco-
nomic growth to energy use. Thus, any attempt to diminish energy
consumption may not have much influence on economic growth. The
feedback hypothesis presumes the existence of bi-directional causality
between energy consumption and economic growth. Under the fourth
hypothesis (neutrality hypothesis), it's assumed that any change in
energy consumption might not have any effect on economic growth,
and vice versa [8].
The first study on the growth-energy relationship was conducted by
Kraft and Kraft, [18] who found unidirectional causality from gross
national product (GNP) growth to energy consumption using US data
from 1947 to 1974. Yet, reducing two years from the initial dataset,
Akarca and Long [1] did not find, surprisingly, any association between
the two variables. They argue that the 1973 oil embargo is the
responsible for the contamination of used data series. Using data from
six industrialized countries and with a time period of 30 years (1952–
1982), Erol, Yu [13] found feedback causality running between
economic growth (EG) and energy consumption (EC) for Japan,
unidirectional causality from EC to EG for Canada, from EG to EC
for Germany and Italy, and none for France and England.
Focusing on a set of developing countries, Masih and Masih [26]
postulated unidirectional causality from EC to EG in India, and from
EG to EC in Pakistan and Indonesia, but none for Malaysia, Singapore
and the Philippines. Soytas and Sari [40] postulated that economic
growth Granger affects energy use in Italy and Korea, while a
unidirectional causality runs from energy use to economic growth in
other developed countries such as France, Germany, Japan and Turkey.
Huang et al. [16] supported the neutrality hypothesis for low-income
countries, but found unidirectional causality from EG to EC for middle
and high-income countries, similarly to Aqeel and Butt [7], Shahbaz
and Lean [39], Shahbaz and Feridun [37] for Pakistan, Lee [21] for
France, Italy and Japan, and Lee and Chien [22] for France and Japan.
The reverse causal relationship running from EG to EC was postulated
by Lee [21] for Canada, UK, Germany, Sweden, and Switzerland;
Narayan and Smyth (2008) for G-7 countries; Bowden and Payne [10]
for the US.
The disagreement among the aforementioned studies can be due
mainly to methodological and data differences and countries hetero-
http://dx.doi.org/10.1016/j.rser.2017.03.067
Received 26 January 2016; Received in revised form 20 January 2017; Accepted 10 March 2017
⁎
Correspondence to: 4, Rue Abou Zakaria El Hafsi 1089 Montfleury, Tunis, Tunisia.
E-mail addresses: riadh.brini@fsegs.rnu.tn (R. Brini), mohamed.amara.isg@gmail.com (M. Amara), hatemjemmali79@gmail.com (H. Jemmali).
Renewable and Sustainable Energy Reviews 76 (2017) 620–627
1364-0321/ © 2017 Elsevier Ltd. All rights reserved.
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