Impact of income and energy consumption on CO2 emissions in Morocco: A test of the environmental Kuznets curve

Abstract

This paper uses the ARDL test to empirically assess the validity of the environmental Kuznets curve. Our study investigates the existence of a long-run relationship between CO2 emissions, economic growth and energy consumption. Johansen cointegration tests show that a robust long-run relationship exists between the variables. Specifically, GDP has a positive effect on carbon dioxide emissions, while GDP squared has a negative effect, and energy consumption has a positive impact. Granger causality tests also indicate that GDP and GDP squared caused CO2 emissions unidirectionally in the short run. The results generally support the existence of an inverted U-shaped relationship between economic growth and carbon emissions and a linear relationship between CO2 and energy consumption.

The existence of a long-term environmental Kuznets curve is the result of various national environmental policies, but the impact of energy is still relatively important due to the energy dependence on fossil fuels. The implementation of various renewable energy projects across the country, such as wind turbines and solar panels, is part of this trend of reducing dependence and pollution caused by the use of coal. The study’s findings confirm the environmental Kuznets curve for Morocco between 1980 and 2018.