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For sustainable economic growth that seeks to improve environmental quality: an empirical analysis applied to morocco, algeria, tunisia, and egypt

El Alaoui, Aicha and Nekrache, Hassane (2017): For sustainable economic growth that seeks to improve environmental quality: an empirical analysis applied to morocco, algeria, tunisia, and egypt.

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Abstract

This paper tries to examine the link between economic growth and environmental damage in Morocco, Algeria, Tunisia, and Egypt, denoted MATE. The main objective for these countries in the coming years is to improve economic growth, which is necessary in response to the increasing demand of their populations, the improvement of the life’s quality of their citizens, and to meet the environmental challenges they face. For that, two steps are followed to investigate the relationship between economic growth and environmental damage. In the first step, a basic Environmental Kuznets Curve (EKC) equation for each country over the period 1970-2010 is tested to measure the effect of economic growth on environmental quality and to determinate the possibility of the existence of an EKC. In the second step, a few variables are introduced in the basic EKC equation (model tested in the first step) such as economic openness indicator, enrollment rate, and urbanization rate. The purpose is to measure the possible influence of these variables (included economic growth) on the environmental damage, and to determinate also the possibility of the existence of an EKC. The results of both models show that the relationship between economic growth and environment is complex and ambiguous. It is not possible to find a unique form of this relationship and each variable introduced in the model can give some explanation where the application of EKC is unclear and uncertain. So, each country through policymakers, governmental and nongovernmental organizations must apply preventive and precautionary measures to reduce environmental damages. These measures must be appropriate to its economic and environmental conditions benefiting from the experiences of neighbors, especially those of developed countries, and to take lessons from their past mistakes related to pollution, regional development and resource management.

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