Carbon dioxide emissions, GDP, energy use, and population growth: a multivariate and causality analysis for Ghana, 1971-2013

Date

2016-07-01

Author

Asumadu-Sarkodie, Samuel
Owusu, Phebe Asantewaa

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

220
views

0
downloads

In this study, the relationship between carbon dioxide emissions, GDP, energy use, and population growth in Ghana was investigated from 1971 to 2013 by comparing the vector error correction model (VECM) and the autoregressive distributed lag (ARDL). Prior to testing for Granger causality based on VECM, the study tested for unit roots, Johansen's multivariate co-integration and performed a variance decomposition analysis using Cholesky's technique. Evidence from the variance decomposition shows that 21 % of future shocks in carbon dioxide emissions are due to fluctuations in energy use, 8 % of future shocks are due to fluctuations in GDP, and 6 % of future shocks are due to fluctuations in population. There was evidence of bidirectional causality running from energy use to GDP and a unidirectional causality running from carbon dioxide emissions to energy use, carbon dioxide emissions to GDP, carbon dioxide emissions to population, and population to energy use. Evidence from the long-run elasticities shows that a 1 % increase in population in Ghana will increase carbon dioxide emissions by 1.72 %. There was evidence of short-run equilibrium relationship running from energy use to carbon dioxide emissions and GDP to carbon dioxide emissions. As a policy implication, the addition of renewable energy and clean energy technologies into Ghana's energy mix can help mitigate climate change and its impact in the future.

Subject Keywords

Variance decomposition, Variance decomposition, Carbon dioxide emissions, Ghana, Multivariate co-integration, ARDL bound test, Econometrics

URI

https://hdl.handle.net/11511/65324

Journal

ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH

DOI

https://doi.org/10.1007/s11356-016-6511-x

Collections

Engineering, Article

Suggestions

OpenMETU
Core

Carbon dioxide emission, electricity consumption, industrialization, and economic growth nexus: The Beninese case Asumadu-Sarkodie, Samuel; Owusu, Phebe Asantewaa (2016-01-01) In this study, the causal nexus between carbon dioxide emission, electricity consumption, industrialization, and economic growth was examined in Benin for the periods between 1980 and 2012 using the autoregressive distributed lag approach. Evidence from the study shows that a 1% increase in electricity consumption will increase carbon dioxide emissions by 0.56% in the short run, a 1% increase in Benin's total electricity consumption will increase carbon dioxide emissions by 0.95% in the long run, while a 1%...
The causal nexus between energy use, carbon dioxide emissions, and macroeconomic variables in Ghana Asumadu-Sarkodie, Samuel; Owusu, Phebe Asantewaa (2017-01-01) The study examined the causal nexus between energy use, carbon dioxide emissions, and macroeconomic variables in Ghana with data spanning from 1960 to 2013 using the vector error correction model (VECM). It is evidential from the study that almost 12% of future fluctuations in energy use are due to shocks in financial development and 10% of future fluctuations in carbon dioxide emissions are due to shocks in energy use. There was evidence of a bidirectional causality between: energy use and financial develo...
The relationship between carbon dioxide and agriculture in Ghana: a comparison of VECM and ARDL model Asumadu-Sarkodie, Samuel; Owusu, Phebe Asantewaa (2016-06-01) In this paper, the relationship between carbon dioxide and agriculture in Ghana was investigated by comparing a Vector Error Correction Model (VECM) and Autoregressive Distributed Lag (ARDL) Model. Ten study variables spanning from 1961 to 2012 were employed from the Food Agricultural Organization. Results from the study show that carbon dioxide emissions affect the percentage annual change of agricultural area, coarse grain production, cocoa bean production, fruit production, vegetable production, and the ...
The relationship between carbon dioxide, crop and food production index in Ghana: By estimating the long-run elasticities and variance decomposition Sarkodie, Samuel Asumadu; Owusu, Phebe Asantewaa (2017-06-01) The study estimated the relationship between carbon dioxide, crop and livestock production index in Ghana: Estimating the long-run elasticities and variance decomposition by employing a time series data spanning from 1960-2013 using both fit regression and ARDL models. There was evidence of a long-run equilibrium relationship between carbon dioxide emissions, crop production index and livestock production index. Evidence from the study shows that a 1% increase in crop production index will increase carbon d...
The impact of energy, agriculture, macroeconomic and human-induced indicators on environmental pollution: evidence from Ghana Asumadu-Sarkodie, Samuel; Owusu, Phebe Asantewaa (2017-03-01) In this study, the impact of energy, agriculture, macroeconomic and human-induced indicators on environmental pollution from 1971 to 2011 is investigated using the statistically inspired modification of partial least squares (SIMPLS) regression model. There was evidence of a linear relationship between energy, agriculture, macroeconomic and humaninduced indicators and carbon dioxide emissions. Evidence from the SIMPLS regression shows that a 1% increase in crop production index will reduce carbon dioxide em...

Citation Formats

S. Asumadu-Sarkodie and P. A. Owusu, “Carbon dioxide emissions, GDP, energy use, and population growth: a multivariate and causality analysis for Ghana, 1971-2013,” ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH, pp. 13508–13520, 2016, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/65324.