Financial Development and Environmental Quality: Empirical Evidence for Morocco

Jamal Sekali, Mohamed Bouzahzah

Abstract


This paper explores the effects of financial development on environmental quality in Morocco using time series data over the period of 1980-2015 and ARDL modeling (autoregressive distributive lag model). Here, several variables representing financial development, economic growth, and energy consumption were explored. The model shows the existence of a link, though not statistically a significant one, between financial development and C02 emissions. This said, the government is highly in need to engage a development process that promotes a balance between the environmental, economic, and social dimensions.

Keywords: financial development, C02 emissions, environmental performance, Autoregressive Distributed Lag Model.

JEL Classification: C32, Q43

DOI: https://doi.org/10.32479/ijeep.7266


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