Impact of the Public Investment Budget in Renewable Energy on Energy Efficiency in Morocco: An Econometric Approach

Abstract

This study examines the impact of public investment budgets allocated to renewable energies (solar, wind, etc.) on energy efficiency in Morocco. It addresses a central research question: to what extent can public investment in renewable energies foster improvements in energy efficiency in Morocco, both in the short and long term? To investigate this issue, we apply an econometric approach based on the ARDL/ECM model to annual data covering the period 2000 - 2020. The model includes three main explanatory variables: the public investment budget in renewable energies (BIP_EnR), the share of renewables in final energy consumption (Part_EnR_CFE), and CO₂ emissions from fossil fuel combustion (EMIS_CO2_CC). The dependent variable is the level of primary energy intensity (Niv_IEEP), which is a key indicator of energy efficiency.

The results indicate that an increase in public investment in renewables has a positive and significant effect on improving energy efficiency in both the short and long term, although the magnitude of this effect remains relatively modest. By contrast, CO₂ emissions emerge as a major factor in the deterioration of energy efficiency, confirming their critical role in Morocco’s energy dynamics. Finally, the share of renewables in final energy consumption shows a paradoxically negative effect in both the short and long term, likely reflecting transition costs, technological constraints, and the adjustments required for the integration of renewables into Morocco’s energy system.

EL Classification : C43, Q48, C32, O13

Paper type: Empirical research