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The relationship between carbon dioxide, crop and food production index in Ghana: By estimating the long-run elasticities and variance decomposition
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Date
2017-06-01
Author
Sarkodie, Samuel Asumadu
Owusu, Phebe Asantewaa
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This work is licensed under a
Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License
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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 dioxide emissions by 0.52%, while a 1% increase in livestock production index will increase carbon dioxide emissions by 0.81% in the long-run. There was evidence of a bidirectional causality between a crop production index and carbon dioxide emissions and a unidirectional causality exists from livestock production index to carbon dioxide emissions. Evidence from the variance decomposition shows that 37% of future fluctuations in carbon dioxide emissions are due to shocks in the crop production index while 18% of future fluctuations in carbon dioxide emissions are due to shocks in the livestock production index. Efforts towards reducing pre-production, production, transportation, processing and post-harvest losses are essential to reducing food wastage which affects Ghana's carbon footprint.
Subject Keywords
Carbon dioxide emissions
,
Econometrics
,
Food production
,
Ghana
,
Variance decomposition
URI
https://hdl.handle.net/11511/65480
Journal
ENVIRONMENTAL ENGINEERING RESEARCH
DOI
https://doi.org/10.4491/eer.2016.135
Collections
Engineering, Article