| Summary: | This study investigates empirically the Environmental Kuznets Curve hypothesis within a financial development and natural resource extraction context for aggregate and sectoral carbon dioxide (CO<sub>2</sub>) emissions in Tunisia. Using annual time-series data covering the period 1971–2016 it is found that financial development increases aggregate CO<sub>2</sub>, CO<sub>2</sub> emissions from the transport sector, and CO<sub>2</sub> consumption from liquid fuel but reduces CO<sub>2</sub> emissions from manufacturing and construction as well as the residential and building. Natural resource extraction exerts upward pressure on CO<sub>2</sub> emissions from the manufacturing and construction sector as well as from the consumption of gaseous fuels whiles the contrary is found for CO<sub>2</sub> emissions. The existence of the EKC hypothesis or otherwise within the context of financial development and natural resources extraction is found to be dependent on the source of CO<sub>2</sub> emissions in Tunisia. The findings among other things imply the enforcement of stringent environmental laws that ensure environmental quality amidst natural resources extraction and financial development.
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