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

Kingsley Appiah (AAIS Department, Kumasi Technical University, Box 854, Kumasi,Ghana)
Rhoda Appah (Atwima Kwanwoma Senior High/Technical School, Box 5104, Adum,Kumasi,Ghana)
Oware Kofi Mintah (Banking and Finance Department, Kumasi Technical University, Box 854, Kumasi,Ghana)
Benjamin Yeboah (AAIS Department, Kumasi Technical University, Box 854, Kumasi,Ghana)

Abstract


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.


Keywords


ARDL bounds testing; Carbon dioxide emission; Economic growth; Trade; Industrialization; Ghana

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DOI: https://doi.org/10.30564/jesr.v4i1.2716

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