Examining the Nexus Water Demand-Economic Growth in Morocco: A Tapio Decoupling Index Analysis

Abstract

Water, the lifeblood of our planet, plays a crucial role not only in sustaining ecosystems but also in driving economic activities. Its pivotal importance in agriculture, industry, and human consumption makes it a non-negotiable element for societal progress and well-being. Yet, as vital as it is for economic development, its waning availability is sounding alarms worldwide, emphasizing the need for decoupling economic growth from water use. This holds especially true for nations like Morocco, grappling with water management challenges due to its arid and semi-arid climate. This research paper delves into the relationship between Morocco's economic growth and water demand from 1980 to 2017, utilizing the Tapio decoupling index. The findings indicate that water demand is decoupled from economic growth only in the absence of drought, suggesting that Morocco lacks resilience to climate change. These insights underscore the pressing need for robust and resilient water management approaches to ensure long-term economic and environmental sustainability in Morocco. Relying solely on adaptation might not suffice given the recurrent droughts intensified by climate change risks. Hence, a priority for decision-makers should be formulating strategies that enhance resilience.

Keywords: Water scarcity, Tapio decoupling index, Economic growth, Resilience, Morocco.

Classification JEL : Q21- Q25- Q56

Paper type: Empirical Research