A Co-integration Approach to the Study of Economic Growth and Environmental Impact in Ghana

This paper examines the connection between growth (GDP) and environmental conditions (carbon dioxide emissions) for Ghana from a historical viewpoint. Utilizing rigorous econometric investigation, the outcomes recommend that growth per capita be firmly identified with carbon dioxide emission. The results through the application of the co-integration technique indicate that the growth elasticity of emissions has been increasing after some time. By evaluating the Environmental Kuznets Curve (EKC) for the period 1971-2014, the study approves the existence of a sensible turning point and along these lines; EKC “U” shape was present. The outcome proposes that Ghana could check its carbon dioxide discharges in the last four decades. Along these lines, as hypothesized, the cost of degradation related to GDP grows after some time and the research reveals that economic and human activities have a progressively negative environmental impact on the nation when contrasted with its economic prosperity. The study also reveals that there is a uni-directional causality between growth per capita and carbon emissions. One recommendation outlined in this paper is the continuous utilization of renewable energy by both humans and industries in Ghana.
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