The role of renewable energy sector in reducing unemployment: The Moroccan case

Abstract

The Covid-19 pandemic is putting the world into some very hard times and the labor market is currently experiencing a very significant shock. In Morocco, the unemployment rate has increased since the beginning of the crisis. In the other hand, the world is engaged in a sustainable path and Morocco has started some years ago the deployment of renewable energy sources. After the 2008 crisis, the emergence of the concept of “Green New Deal” has demonstrated the impact of environmental measures and strategies included in many countries recovery plans, on boosting the economy. The objective of this article is to highlight the benefits of green economic recovery policies, on the employment in Morocco, especially for the renewable energy sector. The causality between renewable energy consumption and unemployment will be tested using the VAR model, the Johansen co-integration test, and the Granger causality test, for the period 1990-2017. Our results suggest that there is causality running from renewable energy consumption to unemployment. In fact, renewable energy sector can contribute to reduce the employment rate in Morocco. Investments in the sector can then be made to create jobs, particularly after the Covid-19 pandemic, that caused many jobs losses.