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

The Influence of Industrial Output, Financial Development, and Renewable and Non-Renewable Energy on Environmental Degradation in Newly Industrialized Countries

“…In the given models, CO 2 , Y, IO, and UR represent carbon dioxide emissions, total output, industrial output, and urbanization, representing I, A, T, and P in the STIRPAT model, respectively. The variables CO 2 , Y, IO, and UR employed for I, A, T, and P are similar to earlier studies Al-Mulali, U. et al (2015) [11], Saidi and Mbareak (2017) [24], and Appiah et al ( 2019) [50]. In terms of additional variables, FD stands for financial development, TO stands for trade openness, NRE stands for non-renewable energy, and RE stands for renewable energy.…”

“…Zhao et al [49] used the Log Mean Divisia Index and concluded that the major factor behind high carbon emissions was industrial output in Shanghai. Appiah et al [50] identified a causal link between industrialization and CO 2 emissions.…”

Nexus between CO<sub>2</sub> Emissions and Economic Growth, Industrial Production, and Foreign Direct Investment in Vietnam: Symmetric ARDL Approach

“…Studies have shown a two-way relationship between CO 2 emissions and industrialization [29] [30]. Studies also reconfirmed the Environmental Kuznets Curve between industrial development and CO 2 emissions in both short and long term, in addition, CO 2 emissions are also affected by population density and trade [31] [32] [33] [34]. They also showed that the economy is moving toward the use of clean, renewable energy [33] [35].…”