From Energy to Economy

This study investigates the effect of economic variables on Morocco’s gross domestic product (GDP) between 1990 and 2023, focusing on the roles of renewable energy consumption (REC), inflation dynamics, gross fixed capital formation, and labor force participation. Given the increasing global emphasis on sustainable development, this analysis aims to assess how these factors interact and contribute to economic growth in Morocco. By employing quantile regression and causality tests, the research explores the significance of each variable in shaping economic performance. The findings reveal that use of renewable energy (RE) exerts a positive and significant influence on GDP, with a coefficient of 0.577. This confirms a robust link between energy use and growth of the economy. In contrast, inflation and the formation of fixed capital do not show significant effects, suggesting that structural factors may hold more influence in the current economic landscape. The labor force indicates a marked positive correlation with GDP, reinforcing the contribution of human capital investment to economic advancement. Overall, the results advocate for policies that prioritize RE initiatives and enhance labor force participation to stimulate sustained economic growth.