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

Tahar Harkat

MPRA Paper from University Library of Munich, Germany

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.

Keywords: GDP; Energy consumption; CO2 emissions; Long run relationship; ARDL Bound test; Co-integration; Morocco (search for similar items in EconPapers)
JEL-codes: O13 P28 P48 Q43 (search for similar items in EconPapers)
Date: 2020-02-03
New Economics Papers: this item is included in nep-ara, nep-ene, nep-env and nep-gro
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:98476

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