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Research Paper | Economics | Morocco | Volume 10 Issue 11, November 2021

Carbon Tax Effect on the Cereals Market and Electricity Sector in Morocco

Mohamed Adib Ed- Daoudi | Kenza Oubejja

Abstract: In the two last decades, many countries mainly in Europe have adopted policies to reduce carbon emissions, and one of the most effective and popular of these policies is the carbon tax. We simulate the effects of this policy on the Moroccan economy to see its effects mainly on GDP and carbon emissions. We used for this purpose a partial equilibrium model that modelize the market of cereals along with the sector of electricity, with five scenarios from 0,5 to 2,5 USD/ton CO2. The results show that a rate of only 0,5 USD/ton CO2 can significantly reduce carbon emissions while reducing very lightly the GDP, so we encourage the use of the carbon tax at that rate.

Keywords: Partial equilibrium model, carbon tax, emissions, cereals market, electricity sector

Edition: Volume 10 Issue 11, November 2021,

Pages: 983 - 992