Evaluating Green Fiscal Policy and Regional Trade: A Computable General Equilibrium Application to Morocco under African Continental Free Trade Area (AfCFTA)

Article DOI: https://doi.org/10.57017/jaes.v20.3(89).09

Author(s):

Said AIT FARAJI Laboratory for Gender, Economics, Actuarial Science, Statistics, Demography, and Sustainable Development, National Institute of Statistics and Applied Economics, Rabat, Morocco
Nouzha ZAOUJAL Laboratory for Gender, Economics, Actuarial Science, Statistics, Demography, and Sustainable Development, National Institute of Statistics and Applied Economics, Rabat, Morocco

Abstract:

This article evaluates the combined effects of carbon taxation and regional trade liberalization in Morocco using a dynamic Computable General Equilibrium (CGE) model. Calibrated to a 2019 Social Accounting Matrix enriched with trade and emissions data, the model simulates progressive carbon pricing alongside tariff reductions under AfCFTA. The study compares alternative fiscal recycling schemes, including income tax cuts, wage cost reductions, and investment support, to assess their macroeconomic, social, and environmental outcomes. Results show that certain recycling designs can simultaneously promote trade competitiveness, ensure fiscal sustainability, and reduce CO₂ emissions. These findings offer insights for policymakers designing integrated green fiscal strategies in developing countries undergoing trade reforms.

Copyright© 2025 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Article’s history: Received 2nd August, 2025; Received in revised form 29th of August, 2025; Accepted 15th of September, 2025; Available online: 30th of September, 2025. Published as article in the Volume XX, Fall, Issue 3(89), 2025.

How to cite:

Ait Faraji, S., & Zaoujal, N. (2025). Evaluating Green Fiscal Policy and Regional Trade: A Computable General Equilibrium Application to Morocco under African Continental Free Trade Area (AfCFTA). Journal of Applied Economic Sciences, Volume XX, Fall, 3(89), 501 - 519. https://doi.org/10.57017/jaes.v20.3(89).09

Acknowledgments/Funding: This research received no external funding. The authors have no acknowledgments to declare and report no conflict of interest.

Conflict of Interest Statement: The authors declare that they have no financial or personal conflicts of interest that could influence the results or interpretations presented in this article. No external funding sources were received for the conduct of this research.

Data Availability Statement: The data that support the findings of this study are available from the corresponding author upon reasonable request.

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