The Effect of Energy and Urbanisation on Carbon Dioxide Emissions: Evidence from Ghana

30 Pages Posted: 7 Dec 2018

See all articles by Paul Adjei Kwakwa

Paul Adjei Kwakwa

Presbyterian University College, Ghana

Hamdiyah Alhassan

University for Development Studies - Faculty of Agribusiness and Communication Sciences

Date Written: December 2018

Abstract

Concerned with the declining trend of renewable energy consumption as well as a change in the energy mix for electricity production amidst growing urban population and carbon dioxide (CO) emissions in Ghana, this study examines the effect of urbanisation and energy on carbon dioxide emissions in Ghana within the framework of the Environmental Kuznets Curve (EKC) Hypothesis over the period 1971–2013. Estimation results from Fully Modified OLS confirm the presence of the EKC hypothesis over the period for Ghana. In addition, combustible renewables and waste consumption, electricity production from hydro and trade openness are found to reduce carbon dioxide emission while fossil fuel consumption, electricity production from fossil fuels, urbanisation and industrialisation increase carbon dioxide emission for Ghana. The study again finds that an interaction between urbanisation and combustible renewables and waste consumption, however, has a positive effect on CO while the interaction between urbanisation and fossil fuel consumption has a negative effect. Further analysis using the Engel–Granger causality test, the variance decomposition and impulse response functions are embarked. The outcome of the study implies the need to pursue the implementation of the low‐carbon development strategy.

Suggested Citation

Kwakwa, Paul Adjei and Alhassan, Hamdiyah, The Effect of Energy and Urbanisation on Carbon Dioxide Emissions: Evidence from Ghana (December 2018). OPEC Energy Review, Vol. 42, Issue 4, pp. 301-330, 2018. Available at SSRN: https://ssrn.com/abstract=3297152 or http://dx.doi.org/10.1111/opec.12133

Paul Adjei Kwakwa (Contact Author)

Presbyterian University College, Ghana ( email )

Box 59
Abetifi
Okwahu
Ghana

Hamdiyah Alhassan

University for Development Studies - Faculty of Agribusiness and Communication Sciences ( email )

Box 1882
Tamale
Ghana

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