Renewable Energy and Economic Growth in Morocco

Abstract

Environmental degradation, finite resources, and fluctuating oil prices have driven Morocco’s transition to clean and renewable energy. However, the country faces challenges in meeting its future energy demand, leading to increased reliance on imported fossil fuels and carbon emissions. To address these challenges, Morocco has set ambitious targets for renewable energy deployment. This paper examines the relationship between renewable and non-renewable energy consumption and analyzes their impact on profitable growth in Morocco. Our empirical results show that renewable energy is positively associated with profitable sustainable development, and there is a causal relationship from renewable energy consumption to profitable growth and from profitable growth to CO2 emissions. Innovative financing solutions are needed to support the growth of renewable energy systems, as they offer sustainable, unlimited, and decarbonized energy sources to address future energy challenges. Morocco’s strategy to develop solar, wind, and hydroelectric power has placed the country in a promising position to meet energy demands while reducing carbon emissions.