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Enhancing energy efficiency through sustainable technological progress is imperative for pursuing sustainable development, particularly in developing countries where economic growth is strongly linked to higher energy consumption. In Tunisia, an open and developing economy, fossil energy consumption can be reduced without compromising economic growth by focusing on diminishing energy intensity. This study investigates the effects of technological progress on the overall energy intensity in Tunisia from 1980 to 2019, examining the role that technological advancements may play in attaining sustainable development goals. This study is based on a growth accounting model that uses time-series analysis and a cointegration estimation approach. Our empirical results suggest the presence of a long-term connection between the variables. The attainment of enhanced energy efficiency is contingent on the growth rate of technological progress, which should exceed capital and labor productivity. The results reveal that the net impact of technological advancements is estimated at -0.0163, which signifies that aggregate energy intensity tends to decrease by an annual average of 1.63% in the long term. These findings underscore the need for developing economies to restructure their energy policies and support sustainable technological initiatives and green entrepreneurship. Developing countries can reduce their energy intensity while boosting their economic growth by fostering technological innovation. This study demonstrates how technological progress and green entrepreneurship can be leveraged to enhance energy efficiency and drive sustainable development in developing nations.
Oussama Zaghdoud (Wed,) studied this question.