The impact of incentive mechanisms for the reduction of polluting emissions from the energy sector on the performance of inward investments in Morocco: an empirical analysis

Abstract

In a global context marked by ecological crisis and economic challenges, the issue of attracting investment to stimulate economic growth often comes up against environmental concerns. This duality between attracting investment and ensuring sustainable resource management raises a complex paradox that requires in-depth analysis. It is in this complex context that this article takes place, the main objective of which is to study the links that exist between the performance of incoming investments in Morocco and the implementation of incentive mechanisms aimed at reducing carbon emissions. carbon dioxide (CO2), greenhouse gases (GHG), and the environmental tax. The empirical study is based on the ARDL (AutoRegressive Distributed Lag) econometric methodology. This method of analyzing time series makes it possible to explore the relationships between the different variables. Specifically, the study examines the short-term and long-term effects of environmental tax, CO2 and GHG emissions on inward investment performance. Based on the results obtained, the article also aims to propose solutions, to raise the paradox between the attractiveness of investments and the preservation of the ecosystem. Despite the significant relationships brought to light by the analysis, showing how incentives to reduce polluting emissions and the implementation of the environmental tax generate positive effects on the performance of investments, the conclusions insinuate that persevering in the transition towards greener energy practices remains essential. It is not only a question of strengthening financial incentives in favor of environmentally friendly projects, but also of promoting innovative financing mechanisms to stimulate the attractiveness of investments in this sector.

Keywords: Polluting emissions, Inward investment performance index, Environmental tax, Greenhouse gases

Classification JEL : C22, O13, K32, F21

Paper type: Empirical research