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.
Faraji et al. (Mon,) studied this question.