LONG RUN RELATIONSHIP BETWEEN ENVIRONMENTAL POLLUTION, ECONOMIC GROWTH AND ENERGY CONSUMPTION IN GHANA MASTER OF ARTS IN ECONOMICS DEPARTMENT OF STUDIES IN ECONOMICS AND CO-OPERATION MANASAGANGOTRI, MYSORE MAY 2015 (original) (raw)

Econometric Analysis of Influences of Trade Openness, Economic Growth and Urbanization on Greenhouse Gas Emission in Africa (1960-2010)

Journal of Economics and Sustainable Development, 2014

This study investigated the influences of economic growth, increased urbanization and trade openness on carbon dioxide (CO 2) emissions in Africa. The study used time series data accessed from World Bank Data Base and Environmental Information Association (EIA) covering 51 years (1960-2010). The data were subjected to various econometric tests including Unit root tests before applying the bound test for cointegration using Autoregressive Distributed Lag (ARDL). It was found that GDP growth rate (p<0.05) and trade openness (p<0.05) were the major long-run and short-run determinants of emissions (Green House Gas emissions) on the continent. The findings which agreed with other environmental economists' and Kuznet's postulation informed us to recommend that African countries should begin to take proactive measures that will bring about green economy on the continent.

Investigating the multivariate Granger causality between energy consumption, economic growth and CO 2 emissions in Ghana

Energy Policy, 2018

Increase in human activities contribute to the economic growth of a country. However, these human activities also contribute to the environmental pollution (i.e. carbon dioxide emissions). The effect of carbon dioxide (CO 2) emissions on the environment is becoming a pressing reality. The study explores the relationship between CO 2 and economic growth in Ghana when the economic structure changes. The study also tested the existence of EKC relationship between economic growth and CO 2 in Ghana. Using linear regression model to find the linear relationship between environmental pollution and economic growth in Ghana, the study employed Ordinary Least Square (OLS) in order to minimize the sum of squared residuals. The study used the data of World Development Indicators (WDI) 2017 for the period 1970-2016. The study employed CO 2 (metric tonnes per capita) as proxy of environmental pollution and GDP per capita (current US $) as proxy of economic growth. Findings indicate that CO 2 and GDP per capita increases at different pace and varies over time period and therefore the study could not establish existence of EKC in Ghana. However, the relationship between the variables is significant with t-value 7.784> 2 and P-value of 0.000<0.05. This means that CO 2 emission level in Ghana is influence by GDP. The study findings also indicate that agriculture as the engine of Ghana's economy growth and development is experiencing continuous decline in terms of its contribution to GDP for the past four decades. The study therefore concluded that, there is the need for establishment of regulations, proper institutional structures to set up policy framework, enforcement agencies to monitor to ensure compliance and creation of public awareness of the dangers pose by environmental degradation.

DOES TRADE OPENNESS EXACERBATE CARBON DIOXIDE EMISSION? : EVIDENCE FROM NIGERIA

Oyeranti Olugboyega Alabi, 2023

High emissions of greenhouse gases components have today become a world phenomenon. In Africa, Nigeria is the second-highest emitter of greenhouse gases (GHGs), after South Africa. Carbon dioxide (CO2) emissions constitute the largest source of GHGs; hence it has become a widely discussed and researched subject. This, however, is a negative unintended consequence that has emanated from the growing interdependence of the world economies. One of the major instruments of achieving a global world which also stood as a major determinant of economic growth is trade openness. This paper, therefore, examines the impact and the relationship between trade openness on CO2 emissions in Nigeria. The method employed to achieve the stated objectives is the Autoregressive Distributed Lag (ARDL) cointegration technique, using the annual time series data sourced from the World Bank Development Indicator, 2020, for periods 1980 to 2019. The major findings from the study show that there is an insignificant positive relationship between trade openness on CO2 emissions. Also, there exists an increasing trend of CO2 emissions in Nigeria, while that of trade openness shows fluctuation for the periodic review and this depicts a high vulnerability to external shocks. With these findings, the study recommends that the Nigerian government should be more proactive and tenacious in implementing environmental and trade policies in favour of a cleaner economy. Also, the Nigerian government must become keener toward attracting only investors that will produce clean goods and not compromise on the necessity to improve environmental quality.

Economic Growth, Industrialization, Trade, Electricity Production and Carbon Dioxide Emissions: Evidence from Ghana

Journal of Economic Science Research, 2021

The study scrutinized correlation between electricity production, trade, economic growth, industrialization and carbon dioxide emissions in Ghana. Our study disaggregated trade into export and import to spell out distinctive and individual variable contribution to emissions in Ghana. In an attempt to investigate, the study used time-series data set of World Development Indicators from 1971 to 2014. By means of Autoregressive Distributed Lag (ARDL) cointegrating technique, study established that variables are co-integrated and have long-run equilibrium relationship. Results of long-term effect of explanatory variables on carbon dioxide emissions indicated that 1% each increase of economic growth and industrialization, will cause an increase of emissions by 16.9% and 79% individually whiles each increase of 1% of electricity production, trade exports, trade imports, will cause a decrease in carbon dioxide emissions by 80.3%, 27.7% and 4.1% correspondingly. In the pursuit of carbon emissions' mitigation and achievement of Sustainable Development Goal (SDG) 13, Ghana need to increase electricity production and trade exports.

Pollutant Emissions, Energy Consumption and Economic Growth in Nigeria: A Multivariate Granger Causality Framework

2015

The study investigates the direction of causal relationships among emissions, energy consumption and economic growth in Nigeria using annual time series data for the period 1970-2013. The Johansen maximum likelihood cointegration tests indicate an existence of a unique cointegrating vector, and the normalized long run estimates shows that fossil fuel enhances carbon emissions whereas, clean energy source (electricity) mitigate the atmospheric concentration of C0 2 emissions. Similarly, the Wald exogeneity Granger causality test indicates an existence of unidirectional causation running from fossil fuel to C0 2 emissions and GDP per capita. Alternatively, non-fossil energy (electric power) causes more proportionate change in GDP per capita but our result could not establish any causal link between electric power and carbon emissions. Finally, charting a channel towards ensuring sustainable environment and economic development involves a progressive substitutability of clean energy sources for fossil consumption.

An analysis of the association among carbon dioxide emissions, energy consumption and economic performance: an econometric model

Carbon Management, 2018

This work is intended to present an investigation into the macroeconomic reasons for carbon dioxide emissions in Pakistan for the period 1971-2016. This study adds to the current empirical literature on the association among carbon dioxide emissions, energy consumption, economic growth and the level of investment in Pakistan. The data has been checked for its stationarity by applying the augmented Dickey-Fuller (ADF) unit root test, and then a cointegration test helped in the estimation of long-run equilibrium association between environmental variables. The outcomes of the co-integration test suggest the presence of a long-run equilibrium connection between series. The results of Vector Error Correction Model (VECM) demonstrate that all variables transform to sustain long-run equilibrium. The outcomes of a Granger causality test showed that causality runs from economic performance and population toward CO 2 emissions, while bi-directional causality is found between carbon dioxide emissions and energy usage, and carbon dioxide emissions and trade openness. The results of cumulative sum of recursive residuals (CUSUM) and cumulative sum of recursive residuals squares (CUSUMSQ) show the stability of the functional relationship established in the present work, which implies that this model is an adequate and useful tool for strategy formulation. So, an upsurge or a decrease in macroeconomic series will cause and has caused variations in carbon dioxide emissions in the long run in Pakistan.

The Long-Run Effects of Trade Openness on Carbon Emissions in Sub-Saharan African Countries

Energies, 2020

Using a panel cointegration model developed based on the data extracted from the World Bank indicators, this study quantified the relationship between carbon emissions, energy consumption, economic growth, and trade openness in sub-Saharan African countries. It discovered from our analysis that there exists a long-run causality association amongst CO2 emissions, energy consumption, economic growth, and trade openness. The study noted the existence of the Environmental Kuznets Curve (EKC) in the panel using the square term for trade openness; it was found to have a negative impact, thus trade in the long run will somewhat decrease the environmental pollution in this region. The study results imply that there should be stringent policies and rigorous enforcement in sub-Saharan African to ensure sustainable growth without associative environmental issues.

Effects of Economic Growth, Trade Openness, and Urbanization on Carbon Dioxide Emissions in Ghana, 1960 to 2014

Applied Economics and Finance

This paper examines the effects of per capita gross domestic product (GDP), trade openness, and urbanization on the total carbon dioxide emissions of Ghana using time-series annual data from 1960 to 2014. The 55-year period, from 1960 to 2014, covered economic transformation of Ghana from a low-income agrarian country to a lower-middle income country. The analysis used the autoregressive distributed lag method of co-integration. The results showed that per capita GDP, trade openness, and urbanization all significantly influenced both long-run and short-run levels of carbon dioxide emissions in Ghana. However, increased trade openness led to reduced total emissions, while rising per capita GDP and increased urbanization both increased total emissions albeit at different intensity levels.

Carbon emissions, energy consumption and economic growth: a causality evidence

International Journal of Energy Technology and Policy, 2019

This article examines the short-and long-run association among carbon emissions, energy consumption and economic growth through deploying the environmental Kuznets curve (EKC) using combined (aggregated) and separated (disaggregated) energy consumption data for Zimbabwe from 1980 to 2014. The ARDL bounds tests and Johansen cointegration tests found long-run relationships among the variables. In the long-run, total energy consumption and primary coal consumption produce statistically significant positive relationships with carbon emissions. However, petroleum consumption demonstrates a statistically significant negative association with carbon emissions. The results show the validity of the EKC in total energy and primary coal consumption in the long-run but are invalid for petroleum consumption. In the short run, the findings reveal that total energy, primary coal and petroleum consumption have statistically significant positive relationships with carbon emissions. Furthermore, in the short run, the EKC is evident in petroleum consumption but invalid in both total energy and primary coal consumption. The short-and long-run Granger causality tests results based on the VECM are also discussed. The article concludes that, if carbon emissions are to be reduced in developing economies, alternative energy sources in the form of green technologies should be adopted as substitutes for coal and petroleum.

Revisiting the emissions-energy-trade nexus: evidence from the newly industrializing countries

Environmental Science and Pollution Research, 2016

This paper applies Pedroni's panel cointegration approach to explore the causal relationship between trade openness, carbon dioxide emissions, energy consumption and economic growth for the panel of newly industrialized economies (i.e. Brazil, India, China and South Africa) over 1 Corresponding author the period of 1970-2013. Our panel cointegration estimation results found majority of the variables cointegrated and confirm the long-run association among the variables. The Granger causality test indicates bi-directional causality between carbon dioxide emissions and energy consumption. A uni-directional causality is found running from trade openness to carbon dioxide emission and energy consumption, and economic growth to carbondioxide emissions. The results of causality analysis suggest that the trade liberalization in newly industrialized economies induces higher energy consumption and carbon dioxide emissions. Furthermore, the causality results are checked using an innovative accounting approach which includes forecast-error variance decomposition test and impulse response function. The long-run coefficients are estimated using fully modified ordinary least square (FMOLS) method and results conclude that the trade openness and economic growth reduce carbon dioxide emissions in the long-run. The results of FMOLS test sound the existence of environmental Kuznets curve hypothesis. It means, trade liberalization induces carbon dioxide emission with increased national output, but it offsets that impact in the long-run with reduced level of carbon dioxide emissions.