Quantifying Greenhouse Gas Emissions through Financial Market’s Development in Tunisia: Empirical Evidence from Novel Dynamic ARDL Techniques

Authors

  • Ali Karaca Department of Agricultural and Applied Economics Lubbock, Texas Tech University, Texas 79409. United States of America
  • Abdulrahman Khalid Bin Salman Department of Accounting, College of Business and Economics, Qassim University, P.O.Box: 6640, Buraidah, 51452, Saudi Arabia
  • Tarek Oueslati Higher School of Economic and Commercial Sciences (ESSEC) LR DFI, Financial Development and Innovation, Tunisia
  • Ibtissem Missaoui LR LAMIDED, Higher Institute of Management of Sousse, University of Sousse, Tunisia

DOI:

https://doi.org/10.32479/ijeep.21602

Keywords:

Financial Market Development, Technological Innovation, ARDL Approach, Environmental Sustainability, Greenhouse Gas Emissions

Abstract

This study investigates the impacts of financial development (FMD), GDP per capita (GDP), primary energy consumption (ENG), and trade openness (TO) on total greenhouse gas emissions (EQ) in Tunisia over the period 2000–2021. Using the ARDL approach, complemented by FMOLS, DOLS, and CCR estimators, the results indicate that financial development significantly reduces emissions, reflecting its role in financing green projects and fostering technological innovation. In contrast, GDP per capita and energy consumption exert a positive and substantial effect on emissions, highlighting the carbon-intensive nature of Tunisian growth. Trade openness has a limited short-term effect but contributes to emission reductions in the long term. The negative and significant error-correction coefficient shows a rapid adjustment towards long-term equilibrium. These findings emphasise that promoting sustainable finance, accelerating the energy transition, and implementing well-regulated trade policies are essential levers for mitigating emissions and enhancing environmental sustainability in Tunisia.

Author Biography

Tarek Oueslati, Higher School of Economic and Commercial Sciences (ESSEC) LR DFI, Financial Development and Innovation, Tunisia

,

Downloads

Published

2025-12-26

How to Cite

Karaca, A., Salman, A. K. B., Oueslati, T., & Missaoui, I. (2025). Quantifying Greenhouse Gas Emissions through Financial Market’s Development in Tunisia: Empirical Evidence from Novel Dynamic ARDL Techniques. International Journal of Energy Economics and Policy, 16(1), 385–396. https://doi.org/10.32479/ijeep.21602

Issue

Vol. 16 No. 1 (2026)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.