Effect of CO2 emissions, Renewable Energy Consumption and General Government Final Consumption Spending on Moroccan Economic Growth: ARDL Approach

Abstract

The empirical studies have shown that there is difference in association among depend and independent variables. Supported by framework’s Keynesian theory of EG (Economic Growth), present research aims to examine how economic growth (EG) Morocco is influenced by REC (renewable energy consumption), general government spending, and CO2 emissions. This research used the method of least squares ordinary assess the short- and long-term relationships between the model's variables, using an autoregressive approach for stationarity and distributed degradation. For the years 1993 to 2020, the research has gathered yearly data from WDI. According that empirical results, none independent variable were stationary at the first difference, but dependent variable was. A long-term association between the independent and dependent variables was shown by the model simulation utilizing the bound test. The White test revealed that there was no evidence of heteroscedasticity in the model residuals. The residuals have a normal distribution, as determined by the Shapiro-Wilk test, and the model exhibits stability throughout the time span with no structural fractures. The study's conclusions suggest that while the use of renewable energy sources and carbon dioxide emissions both exhibit notable positive trends, government spending on public goods has a substantial adverse association with economic growth.