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Nexus between Energy Consumption, Economic Development, and CO2 Emissions: Empirical Evidence from Morocco

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  • Harkat, Tahar

Abstract

Existing literature that assesses the nexus between economic development, primary energy consumption, and CO2 emissions has been a point of interest for many scholars. Yet, there is no such existing literature that targets assessing such relationship for the case of Morocco. The following contribution determines the long run relationship between these variables using an autoregressive distributive lag model (ARDL) bound test that is developed by Pesaran et al. (2001). Findings indicate that there is a significant co-integration between the variables of interest, meaning that the long run relationship between them exists. Findings also show that energy consumption has direct positive effect on economic growth but it may have larger negative effect on economic growth indirectly through higher carbon dioxide emissions.

Suggested Citation

  • Harkat, Tahar, 2020. "Nexus between Energy Consumption, Economic Development, and CO2 Emissions: Empirical Evidence from Morocco," MPRA Paper 98476, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:98476
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    More about this item

    Keywords

    GDP; Energy consumption; CO2 emissions; Long run relationship; ARDL Bound test; Co-integration; Morocco;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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