Causality between Energy Consumption and Economic Development: Empirical Evidence from Morocco

A handful number of contributions have been trying to find a proper modeling strategy that captures the true dynamic relationship between energy consumption and economic development in different economies, but none of them targeted Morocco. The relationship between these latter variables have been the point of interest of many economists, as they provide solid insights and guidance to policy makers related to monitoring the use of energy as well as the preparation of new energy infrastructures to meet the existing demand for the different existing consumers. For this, the following contribution determines this relationship using Granger causality test, and empirical findings shows that Morocco supports the conservation hypothesis, meaning that the only causal link is unidirectional and goes from GDP to energy consumption.