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Renewable Energy Consumption-Economic Growth Nexus: Empirical Evidence from Morocco

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Book cover Proceedings of the Fourteenth International Conference on Management Science and Engineering Management (ICMSEM 2020)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1191))

Abstract

This paper investigates the causal nexus between renewable energy consumption and economic growth in Morocco by incorporating capital and labour as main factors of production function. This study applies Toda and Yamamoto (1995) causality test on annual data covering the period 1980–2016. On one hand, the results gained from the causality analysis reveal that capital significantly affects the economic growth while labour has not important impact on growth. On the other hand, the findings display that there is no significant causality relationship between renewable energy consumption and economic growth. Our conclusion shows evidence of the neutrality hypothesis within the energy consumption-economic growth literature. This could probably be explained by the uneven and insufficient exploitation of renewable energy sources in Morocco.

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Notes

  1. 1.

    We do not consider other additional variables because our focus is to examine the effect of renewable energy input on the economic growth.

  2. 2.

    The sum of persons in employment plus persons in unemployment.

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Author information

Authors and Affiliations

  1. LEAM, Faculty of Law, Economics and Social Sciences-Souissi, Mohammed V University, Rabat, Morocco

    Mounir El-Karimi & Ahmed EI Ghini

Authors
  1. Mounir El-Karimi
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  2. Ahmed EI Ghini
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Corresponding author

Correspondence to Ahmed EI Ghini .

Editor information

Editors and Affiliations

  1. Business School, Sichuan University, Chengdu, China

    Jiuping Xu

  2. Academy of Sciences of Moldova, Chisinau, Moldova

    Gheorghe Duca

  3. Faculty of Math and Science, Brock University, Hamilton, ON, Canada

    Syed Ejaz Ahmed

  4. ETSI Industriales de Ciudad Real, University of Castile-La Mancha (UCLM), Ciudad Real, Spain

    Fausto Pedro García Márquez

  5. Institute of Control Systems, Azerbaijan Natl Academy of Sciences, Baku, Azerbaijan

    Asaf Hajiyev

Appendix

Appendix

Table 3. Summary of studies on GDP-renewable energy consumption relationship Source: compiled by the authors
Full size table
Fig. 2.
figure 2

(Data source: International Energy Agency)

Annual shares of renewable energy in total electricity generation in Morocco between 2000 and 2014

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Fig. 3.
figure 3

Annual data series for real GDP, REC, real GFCF, and LF in Morocco between 1980 and 2016

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El-Karimi, M., EI Ghini, A. (2021). Renewable Energy Consumption-Economic Growth Nexus: Empirical Evidence from Morocco. In: Xu, J., Duca, G., Ahmed, S., García Márquez, F., Hajiyev, A. (eds) Proceedings of the Fourteenth International Conference on Management Science and Engineering Management. ICMSEM 2020. Advances in Intelligent Systems and Computing, vol 1191. Springer, Cham. https://doi.org/10.1007/978-3-030-49889-4_17

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