The causal nexus between energy use, carbon dioxide emissions, and macroeconomic variables in Ghana

Samuel Asumadu-Sarkodie*, Phebe Asantewaa Owusu

*Corresponding author for this work

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

The study examined the causal nexus between energy use, carbon dioxide emissions, and macroeconomic variables in Ghana with data spanning from 1960 to 2013 using the vector error correction model (VECM). It is evidential from the study that almost 12% of future fluctuations in energy use are due to shocks in financial development and 10% of future fluctuations in carbon dioxide emissions are due to shocks in energy use. There was evidence of a bidirectional causality between: energy use and financial development, energy use and industrialization, and energy use and population. Energy use in Ghana is predicted to decrease from 397 kg of oil equivalent per capita in 2013 to 374 kg of oil equivalent per capita in 2040. Energy policies that aim at increasing the share of renewable and clean energy technologies into Ghana’s energy portfolio will help mitigate climate change and its impacts.

Original languageEnglish
Pages (from-to)533-546
Number of pages14
JournalEnergy Sources, Part B: Economics, Planning and Policy
Volume12
Issue number6
DOIs
Publication statusPublished - 3 Jun 2017
Externally publishedYes

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Keywords

  • carbon dioxide emissions
  • econometrics
  • energy economics
  • Ghana
  • Granger-causality

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