CO2 emissions in Moroccan road transport sector: Divisia, Cointegration, and EKC analyses

Abstract

This article assesses the road transport sector from an environmental perspective in a developing country going through an energy transition. It has three objectives. First, we quantify the contributions of some key factors to the CO2 emissions in the road transportation sector in Morocco. Second, we use a cointegration framework to analyze the relationship between CO2 emissions and energy consumption in the road transportation sector and economic growth, then we check whether the Environmental Kuznets Curve (EKC) hypothesis holds in this sector. While it is shown that everything else constant, economic growth would lead to a reduction in emissions in the transport sector, there is a room for accentuating such a trend and facilitating the country’s commitments in terms of emissions reduction by 2030.