On the causal nexus of road transport CO2 emissions and macroeconomic variables in Tunisia: Evidence from combined cointegration tests

Our empirical exercise reveals that cointegration is present. Energy consumption adds in CO2 emissions. Fuel prices decline CO2 emissions. Road infrastructure boosts CO2 emissions. Transport value-added also increases CO2 emissions. The causality analysis indicates the bidirectional casual relationship between energy consumption and CO2 emissions. Road infrastructure causes CO2 emissions and similar is true from opposite side in Granger sense. The bidirectional causality is also found between transport value-added and CO2 emissions. Fuel prices cause CO2 emissions, energy consumption, road infrastructure and transport value-added in Granger sense. This paper provides new insights to policy makers for designing a comprehensive energy, transport and environment policies for sustainable economic growth in long run.