Author(s)

Saida Zaidi¹, Sabrine Ferhi²

¹Faculty of Economics and Management, University of Sfax, Sfax, Tunisia.
²Faculty of Economics and Management, University of Tunis El Manar, Tunis, Tunisia.

The purpose of this study is to investigate the interrelationship between energy-CO₂ emission-GDP for Sub-Saharan countries covering the period 2000-2012. To circumvent this issue we use dynamic simultaneous-equation. Our empirical findings show that there is a bidirectional causal relationship between energy consumption and economic growth. The results support also a bidirectional relationship between energy consumption and electricity consumption, but variables reflecting pollution affect negatively electricity consumption. As well the rise in economic growth increases the level of CO₂ emissions and vice versa.

GDP, Energy Consumption, CO₂, GMM

Zaidi, S. and Ferhi, S. (2019) Causal Relationships between Energy Consumption, Economic Growth and CO₂ Emission in Sub-Saharan: Evidence from Dynamic Simultaneous-Equations Models. Modern Economy, 10, 2157-2173. doi: 10.4236/me.2019.109136.