THE EFFECT OF ECONOMIC GROWTH ON OF RENEWABLE ENERGY PRODUCTION IN MOROCCO: AN EMPIRICAL ANALYSIS SOURCE-WISE FROM 1964 TO 2021

Abstract

This study investigates the impact of economic growth on renewable energy production in Morocco, with a specific focus on hydraulic, solar, and wind energy sources. Spanning empirical analyses from 1964 to 2021, our exploration employs Robust Weighted Least Squares with M-estimation, to ensure reliability. Our primary objective is to discern the nuanced impact of economic growth, recognizing heterogeneity across different energy sources. The results indicate a positive effect of economic growth on hydraulic, solar and wind energy production, with an increase by 0,257%, 0.0235% and 0.4945%, respectively for each increase in the economic growth. Conversely, our examination of geothermic energy reveals a complex relationship, with a negative effect of economic growth resulting in a 0.0192% decrease in production. The policy implications of our study underscore the importance of fostering economic growth to drive advancements in hydraulic, solar, and wind energy production. Policymakers should prioritize initiatives aligning economic development goals with renewable energy advancements, while addressing the challenges hindering geothermic energy production through tailored strategies. This study contributes valuable insights for informed policy decisions aimed at achieving a sustainable and diversified energy future in Morocco