Financial Development and Environmental Quality: Empirical Evidence for Morocco

Jamal Sekali, Mohamed Bouzahzah


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


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