The energy transition between economic growth and ecological preservation: An empirical analysis of the Kuznets environmental curve in Morocco

Abstract

In a global context marked by climate hazards and the use of non-renewable sources of energy, Morocco has embarked on a new energy strategy over the last two decades aimed at developing renewable energies, particularly solar and wind power. The goal is to reduce its dependence on fossil fuels and become a regional hub given its geographical location.

This article attempts to quantify the impact of the energy transition on both the economic and environmental systems, using carbon dioxide emissions as the variable to be explained and introducing other explanatory variables, namely renewable electricity production and trade openness over the period from 1990 to 2020. The empirical approach used is based on the Staggered Lag Autoregressive Model and the Granger causality test.

The results of this study show the existence of cointegration between the variables at all levels of significance, as well as a positive correlation between economic growth and environmental policies. On the other hand, the role of renewable energies in limiting CO2 emissions was not confirmed, and consequently, there was a negative correlation between changes in GDP and CO2 emissions in the short and long term.

Keywords: Renewable energy, Energy transition, Economic growth, Environmental policy.        

JEL CLASSIFICATION : C 22, Q 40, Q 56

Paper type: Empirical research