The relationship between carbon dioxide, crop and food production index in Ghana: By estimating the long-run elasticities and variance decomposition


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Sarkodie S. A. , Owusu P. A.

ENVIRONMENTAL ENGINEERING RESEARCH, vol.22, no.2, pp.193-202, 2017 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 22 Issue: 2
  • Publication Date: 2017
  • Doi Number: 10.4491/eer.2016.135
  • Title of Journal : ENVIRONMENTAL ENGINEERING RESEARCH
  • Page Numbers: pp.193-202
  • Keywords: Carbon dioxide emissions, Econometrics, Food production, Ghana, Variance decomposition, ECONOMIC VIABILITY, ENERGY USE, FOOTPRINT, EMISSIONS, SUSTAINABILITY, POPULATION, GROWTH, GDP

Abstract

The study estimated the relationship between carbon dioxide, crop and livestock production index in Ghana: Estimating the long-run elasticities and variance decomposition by employing a time series data spanning from 1960-2013 using both fit regression and ARDL models. There was evidence of a long-run equilibrium relationship between carbon dioxide emissions, crop production index and livestock production index. Evidence from the study shows that a 1% increase in crop production index will increase carbon dioxide emissions by 0.52%, while a 1% increase in livestock production index will increase carbon dioxide emissions by 0.81% in the long-run. There was evidence of a bidirectional causality between a crop production index and carbon dioxide emissions and a unidirectional causality exists from livestock production index to carbon dioxide emissions. Evidence from the variance decomposition shows that 37% of future fluctuations in carbon dioxide emissions are due to shocks in the crop production index while 18% of future fluctuations in carbon dioxide emissions are due to shocks in the livestock production index. Efforts towards reducing pre-production, production, transportation, processing and post-harvest losses are essential to reducing food wastage which affects Ghana's carbon footprint.