Multivariate co-integration analysis of the Kaya factors in Ghana

Samuel Asumadu-Sarkodie*, Phebe Asantewaa Owusu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

51 Citations (Scopus)

Abstract

The fundamental goal of the Government of Ghana’s development agenda as enshrined in the Growth and Poverty Reduction Strategy to grow the economy to a middle income status of US$1000 per capita by the end of 2015 could be met by increasing the labour force, increasing energy supplies and expanding the energy infrastructure in order to achieve the sustainable development targets. In this study, a multivariate co-integration analysis of the Kaya factors namely carbon dioxide, total primary energy consumption, population and GDP was investigated in Ghana using vector error correction model with data spanning from 1980 to 2012. Our research results show an existence of long-run causality running from population, GDP and total primary energy consumption to carbon dioxide emissions. However, there is evidence of short-run causality running from population to carbon dioxide emissions. There was a bi-directional causality running from carbon dioxide emissions to energy consumption and vice versa. In other words, decreasing the primary energy consumption in Ghana will directly reduce carbon dioxide emissions. In addition, a bi-directional causality running from GDP to energy consumption and vice versa exists in the multivariate model. It is plausible that access to energy has a relationship with increasing economic growth and productivity in Ghana.

Original languageEnglish
Pages (from-to)9934-9943
Number of pages10
JournalEnvironmental Science and Pollution Research
Volume23
Issue number10
DOIs
Publication statusPublished - 1 May 2016
Externally publishedYes

Keywords

  • Carbon dioxide emission
  • Causality
  • Ghana
  • Kaya factors
  • Multivariate co-integration

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