The Environmental Impact of Foreign Direct Investment in Morocco: Policies, Trends, and Sustainability Outcomes

This study analyzes the environmental impact of Foreign Direct Investment (FDI) in Morocco (2000-2024), examining sectoral differences, policy efficiency, and technology transfer using econometrics and case studies. Findings reveal a positive correlation between FDI in traditional sectors (manufacturing, mining) and CO₂ emissions (r = 0.62, p<0.01), while green FDI (renewable energy) is associated with reduced emissions (r = -0.34, p<0.01). Environmental policy effectiveness is a crucial mediator, with renewable energy policies (Law 13-09, score 8.5/10) more effective than mining regulations (score 4.8/10). EU FDI shows higher technology transfer rates (40% greater). The study recommends tiered FDI screening, local content quotas, and IoT-based monitoring to align investments with SDGs 7, 9, and 13, offering a nuanced perspective on the pollution haven hypothesis. Keywords: Foreign Direct Investment (FDI), environmental sustainability, Morocco, renewable energy, CO₂ emissions, policy effectiveness