This paper investigates the nexus among renewable energy consumption, carbon dioxide emissions, economic development, and service growth in Tunisia under the linear and non-linear autoregressive distributed lags techniques and the Granger causality tests, for the 1980–2020 period. The empirical linear findings proved that renewable energy and service growth positively affect carbon emissions in the long term. The non-linear findings proved that a negative energy shock positively influences environmental quality in the long term. More prominently, in the long run, unilateral causalities from all the modeled variables to carbon emissions have been revealed. To mitigate climate change and get the economy back on track for more prosperity, the Tunisian government must develop an efficient strategy friendly to the environment and further explore the relationship between new technologies and renewable energy. Indeed, we propose to policymakers to encourage and promote the use of innovative clean technologies in the production of renewable energy.

The present study inspects the relationships between the carbon dioxide (CO2) emissions, real GDP, renewable and non‐renewable energy consumption, as well as the service growth for top ten countries (TTC) in service activities. The empirical modeling used in the study involves the procedures of cointegration and tests of Granger causality to inspect the dynamic interaction between the variables during the period from 1980 to 2018. The results of the present study suggest that the variables are cross‐sectionally dependent. In addition, the variables appear to be cointegrated based on several tests. The long‐run outcomes revealed an inversed U‐shaped form between emissions‐GDP proving the validity of the environmental Kuznets curve assumption. The fully modified ordinary least squares and dynamic OLS estimates show that the non‐renewable energy and economic growth contribute to the increase of CO2 emissions, while service value‐added leads to decrease emissions. Furthermore, the renewable energy coefficient comes through as negative but insignificant for the selected panel. The TTC in service should stimulate the usage of renewable energy in various service events for following the path of sustainable development. Devising the investment plans associated with the use of renewable energies is quite essential for the advancement of the service sector leading to mitigating emissions portion.