A comprehensive analysis of the inter-relationships of impact between automotive industry, economic growth, natural resources and environmental degradation: Morocco as an example

This study explores the real and future-world impacts between the automotive industry, economy, environment, and natural resources. Through a comprehensive review of relevant literature, the article highlights the economic benefits of the industry (GDP, employment and exports) as well as its environmental and social challenges of natural resources damages (CO2 and greenhouse gases emissions, air pollution, conversion of agricultural land, forest areas and fresh water resources) in an overlapping reciprocal manner to understand the interplay between the automotive industry, economy, environment, and natural resources in Morocco. This quantitative and empirical research is based on secondary data collected from government organizations using computer programming time series—R language. The main findings indicate that increasing automotive production positively affects GDP, export and employment but leads to higher greenhouse gas emissions. Higher exports are associated with higher GDP, while greater natural resource availability is linked to lower GDP. Past automotive production positively influences current production, and increased exports lead to higher automotive production. However, Low variability in automobile production requires high natural resource consumption and greenhouse gas emissions to be achieved. These results shed light on the intricate connections within the automotive industry and its impact on economic growth, employment, trade, environmental and natural factors. The policy recommendations emanating from this research advocate for a multi–faceted approach, when integrated into the policymaking framework, hold the potential to create a harmonious balance between economic growth, environmental preservation, and resource sustainability.