Understanding the Interplay between Economic Growth and Environmental Dynamics: Insights from the Moroccan Context through an ARDL Model

Abstract

This study investigates the dynamics of economic growth and the environment in the context of Morocco using an Autoregressive Distributed Lag (ARDL) model. The research aims to shed light on the relationship between economic development and environmental degradation, as well as to explore the applicability of the Environmental Kuznets Curve (EKC) hypothesis.

Moving to the empirical analysis, the study utilizes an ARDL model to estimate the relationship between economic growth and environmental indicators in both the short run and the long run. The findings suggest a U-shaped relationship between economic growth and environmental indicators in the short run, while in the long run, economic growth shows an inverted U-shaped relationship with environmental degradation. These results align with the theoretical framework of the EKC hypothesis.