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GTAP Resource #4470

"Socioeconomic impacts of green energy growth policy in Morocco - a general equilibrium analysis"
by Khellaf, Ayache, Abdelaziz Nihou, Abdoul G. Baray, Dominique van der Mensbrugghe, Andrea Liverani and Wally Tyner

The energy sector is critical to the Moroccan green growth strategy. In 2011 Morocco imported 96% of its commercial energy. The current energy profile also has important environmental consequences as oil and coal together constitute 84% of total commercial energy. Energy access is critical for the Moroccan poor, and their use of wood for fuel contributes to deforestation. If Morocco could move towards a more renewable energy profile, it could reduce the foreign exchange burden of energy imports and reduce greenhouse gas (GHG) emissions at the same time.

A hybrid CGE model named MANAGE was used for the analysis. It is a recursive dynamic model conceived for energy and climate change research. The model has many standard characteristics of a dynamic CGE model of neoclassical economic growth with labor growth being exogenous and capital growth derived from savings and investment decisions. It uses constant elasticity of substitution (CES) functions among different inputs. Energy is assumed to be a complement of capital in the short term but a substitute in the long term. There are two vintages of capital equipment with the new capital being of higher energy efficiency than old capital. There is specific capital for solar and wind energy that cannot be used in other sectors. The model has the capacity for multi-input and multi-output. For example, electricity can be produced by different technologies (solar, wind, hydro, and thermal). Also, more than one product can be produced from an input, e.g., oilseeds going to vegetable oil and lamp oil and oilseed meal. The model also tracks GHG emissions throughout the economy basically with emission being a function of different kinds of fossil fuel use. Another important feature of the model is that the household is disaggregated into five households representing each quintile from poor to rich. This disaggregated household permits analysis of the impacts of the different policies on the poor as well as the entire...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Khellaf, A. (4/15/2014)
Updated: Tyner, W. (5/19/2014)
Visits: 1,528
- Dynamic modeling
- Climate change policy
- Domestic policy analysis
- Africa (North)

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