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

In the two last decades, many countries mainly in Europe have adopted policies to reduce carbone missions, and one other 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 0, 5 usd/ton CO2 only can significantly reduce carbon emissions while reducing very lightly the GDP, so we encourage the use of the carbon tax at that rate.