Is there a causal effect between agricultural production and carbon dioxide emissions in Ghana?


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Owusu P. A. , Asumadu-Sarkodie S.

ENVIRONMENTAL ENGINEERING RESEARCH, vol.22, no.1, pp.40-54, 2017 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 22 Issue: 1
  • Publication Date: 2017
  • Doi Number: 10.4491/eer.2016.092
  • Journal Name: ENVIRONMENTAL ENGINEERING RESEARCH
  • Journal Indexes: Science Citation Index Expanded, Scopus
  • Page Numbers: pp.40-54
  • Keywords: Agricultural production, Carbon dioxide emissions, Econometrics, Ghana, Granger-causality, Variance decomposition, ECONOMIC-GROWTH, ELECTRICITY CONSUMPTION, ENERGY USE, FINANCIAL DEVELOPMENT, INDUSTRIALIZATION, MULTIVARIATE, POPULATION, VIABILITY, NEXUS, GDP

Abstract

According to FAO, "agricultural sectors are particularly exposed to the effects of climate change and increases climate variability". As a result, the study makes an attempt to answer the question: Is there a causal effect between agricultural production and carbon dioxide emissions in Ghana? By employing a time series data spanning from 1960 to 2015 using the Autoregressive Distributed Lag method. There was evidence of a long-run equilibrium relationship running from copra production, corn production, green coffee production, milled rice production, millet production, palm kernel production and sorghum production to carbon dioxide emissions. The short-run equilibrium relationship shows that, a 1% increase in copra and green coffee production will increase carbon dioxide emissions by 0.22% and 0.03%, a 1% increase in millet and sorghum production will decrease carbon dioxide emissions by 0.13% and 0.11% in the short-run while a 31% of future fluctuations in carbon dioxide emissions are due to shocks in corn production. There was bidirectional causality between milled rice production and carbon dioxide emissions, millet production and carbon dioxide emissions and, sorghum production and carbon dioxide emissions; and a unidirectional causality running from corn production to carbon dioxide emissions and carbon dioxide emissions to palm kernel production.