Abstract

This research work investigates how carbon tax impacts Moroccan green-house gas (GHG) emissions and economic growth. The analysis confirms the high emissions profile of Morocco, with more than 70% ascribed to its energy sector. An estimated increase in fuel prices is expected to result from a carbon tax of 50 USD/tCO2e, which might help reducing GHG emissions specially through gasoline. Furthermore, a simultaneous lowering of income taxes may foster economic growth and even GDP projections show an increase on net. The results highlight the delicate balance between environmental sustainability and economic development, advocating for the adoption of carbon taxation as an essential tool to mitigate emissions while supporting Morocco’s economic ambitions.