Environmental Fiscal Reform in Morocco: Options and Pathways Peszko, Grzegorz Black, Simon Platonova-Oquab, Alexandrina Heine, Dirk Timilsina, Govinda 2020-07-06T21:08:21Z 2020-07-06T21:08:21Z 2019-04-25
dc.description.abstract In response to the request from the Ministry of Environment and in close collaboration of the Ministry of Economy and Finance, the World Bank Group, with support from the Partnership for Market Readiness (PMR) and the NDC Support Facility, provided technical support to Morocco aimed at exploring the opportunities offered by environmental fiscal reform (EFR), such as that incorporating carbon pricing, to strengthen green growth. As part of this support, the WBG has assessed carbon pricing options that could be appropriate for Morocco and simulated their selected economic impacts with macroeconomic model in collaboration with the Research and Forecast Department of the Ministry of Economy and Finance (MoEF) of Morocco. This report outlines the key considerations for policy-makers in Morocco and presents a preliminary finding from modelling conducted by the MoEF in collaboration with the WBG, as well as identifies the needs for the secondary analysis. As part of its national development strategy, Morocco is implementing and planning further reforms of its fiscal systems, energy sector, industrial structure, as well as an ambitious climate change action as per the objectives of the Nationally Determined Contribution. This note explores whether and how these reforms might be supported by aligning fiscal incentives with sectoral policy objectives to accelerate the rate of future growth while reducing its carbon emission intensity. Environmental fiscal reforms (EFRs) are a collection of changes to tax, expenditure, and other policies which collectively seek to raise national development and welfare. This report explores potential options for implementing an environmental fiscal reform (EFR) as part of Morocco’s broader economic strategy and tests the impacts of these options with the Morocco’s CGE model. It is structured as follows. The second section discusses Morocco’s national development challenges and the strategic policy goals, where EFR can play a role. The third section provides an overview of options for EFR in Morocco, as identified by the World Bank Group team and national experts, including (i) modifications of fuel tax structure (TICs) to better reflect social costs of fuel use, (ii) butane subsidy reform, or (iii) more direct environmental pricing through taxes or emissions trading. The fourth section introduces the CGE model for Morocco, used by the DEPF, and simulates impacts of several potential EFR design options identified in the previous section. It also discusses the limitations of the existing CGE model to reflect the impacts of the EFR, and in this context analyzes the results of scenario analysis conducted with the CGE model. The fifth and final section concludes. en
dc.language English
dc.publisher World Bank, Washington, DC
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.subject FISCAL POLICY
dc.subject FISCAL REFORM
dc.subject ENERGY POLICY
dc.subject AIR POLLUTION
dc.subject ENERGY TAX
dc.subject FUEL SUBSIDY
dc.subject CGE MODEL
dc.subject CARBON TAX
dc.subject LPG SUBSIDY
dc.subject TAXATION
dc.title Environmental Fiscal Reform in Morocco en
dc.title.subtitle Options and Pathways en
dc.type Report en
dc.type Rapport fr
dc.type Informe es
dspace.entity.type Publication
okr.crossref.title Environmental Fiscal Reform in Morocco 2019-06-10
okr.doctype Economic & Sector Work
okr.doctype Economic & Sector Work :: Public Environmental Expenditure Review
okr.identifier.doi 10.1596/34030
okr.identifier.externaldocumentum 090224b086c08fec_1_0
okr.identifier.internaldocumentum 31014216 136470
okr.imported true en
okr.language.supported en
okr.pdfurl en
okr.region.administrative Middle East and North Africa Chile Iran, Islamic Republic of Mexico Morocco South Africa
okr.sector Energy and mining :: Other Energy and Extractives
okr.theme Environment and natural resource management :: Environmental policies and institutions
okr.topic Public Sector Development :: Public Sector Expenditure Policy
okr.topic Energy :: Energy Policies & Economics
okr.topic Energy :: Energy and Environment
okr.topic Environment :: Air Quality & Clean Air
okr.topic Environment :: Brown Issues and Health
okr.topic Environment :: Pollution Management & Control
okr.topic Macroeconomics and Economic Growth :: Taxation & Subsidies
okr.unit ENR GP MNA (GENME)
relation.isAuthorOfPublication ec078411-25b2-5f48-8de4-79b1568c8e78
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