Multivariate co-integration analysis of the Kaya factors in Ghana

Date

2016-05-01

Author

Asumadu-Sarkodie, Samuel
Owusu, Phebe Asantewaa

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The fundamental goal of the Government of Ghana's development agenda as enshrined in the Growth and Poverty Reduction Strategy to grow the economy to a middle income status of US$1000 per capita by the end of 2015 could be met by increasing the labour force, increasing energy supplies and expanding the energy infrastructure in order to achieve the sustainable development targets. In this study, a multivariate co-integration analysis of the Kaya factors namely carbon dioxide, total primary energy consumption, population and GDP was investigated in Ghana using vector error correction model with data spanning from 1980 to 2012. Our research results show an existence of long-run causality running from population, GDP and total primary energy consumption to carbon dioxide emissions. However, there is evidence of short-run causality running from population to carbon dioxide emissions. There was a bi-directional causality running from carbon dioxide emissions to energy consumption and vice versa. In other words, decreasing the primary energy consumption in Ghana will directly reduce carbon dioxide emissions. In addition, a bi-directional causality running from GDP to energy consumption and vice versa exists in the multivariate model. It is plausible that access to energy has a relationship with increasing economic growth and productivity in Ghana.

Subject Keywords

Pollution, Health, Toxicology and Mutagenesis, Environmental Chemistry, General Medicine

URI

https://hdl.handle.net/11511/65734

Journal

ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH

DOI

https://doi.org/10.1007/s11356-016-6245-9

Collections

Engineering, Article

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Citation Formats

S. Asumadu-Sarkodie and P. A. Owusu, “Multivariate co-integration analysis of the Kaya factors in Ghana,” ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH, pp. 9934–9943, 2016, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/65734.