The Nature of the Relationship Between Energy Consumption and Economic Growth in Morocco

The chapter explores the complex interplay between energy consumption and economic growth, with a specific focus on Morocco over a 50-year period from 1970 to 2020. It begins by reviewing existing literature on the causal relationship between these two variables, highlighting the diverse findings from studies conducted in various countries. The chapter then presents a comprehensive methodological approach, utilizing Granger causality tests, stationarity tests, and vector autoregressive (VAR) models to analyze the data. The empirical results reveal a unidirectional causality from economic growth to energy consumption in Morocco, suggesting that economic growth drives energy consumption rather than the other way around. This finding has significant implications for public policy, indicating that efforts to reduce energy consumption may not necessarily hamper economic growth. The chapter also discusses the historical context of energy consumption in Morocco, noting key events such as the oil shocks of the 1970s and the financial crisis of 2008, which have shaped the country's energy landscape. The detailed analysis and robust methodology make this chapter a valuable resource for understanding the energy-economy dynamics in a developing country context.