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 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 22 Issue: 2
  • Publication Date: 2017
  • Doi Number: 10.4491/eer.2016.135
  • Journal Name: ENVIRONMENTAL ENGINEERING RESEARCH
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • 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
  • Middle East Technical University Affiliated: Yes

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.