PurposeAgricultural development still constitutes an integral part of Ghana's drive towards job creation, industrial development and economic growth with various growth policies placing the agricultural sector at the core. While there are likely environmental effects of agricultural activities, evidence in Ghana remains scanty. The study focused on examining, empirically, the effects of the development of the agricultural sector on carbon dioxide (CO2) emission in Ghana.Design/methodology/approachThe paper employed the Stochastic impacts by regression on population, affluence and technology (STIRPAT) framework to test for the environmental Kuznets curve (EKC) hypothesis for agriculture and carbon dioxide emission as well as the effect that the changing structure of Ghana's agricultural development has on carbon dioxide emission for the 1971–2018 period. Regression analysis, variance decomposition and causality analysis were performed.FindingsThe regression results revealed a U-shaped relationship between agricultural development and carbon emission, implying a rejection of the EKC hypothesis between the two variables. In addition, the Structural Adjustment Programme was found to positively moderate the effect agriculture has on carbon emission.Practical implicationsThe study recommends the need for policy-makers to facilitate the large-scale adoption and use of modern technology and environmentally friendly agricultural methods.Originality/valueThe study is among the few works to assess the EKC hypothesis between agriculture and carbon dioxide emission in Africa. The direct and indirect effect of structural adjustment programme on carbon emission is estimated.
Purpose The desire for a sustainable environment has led to the need to reduce carbon dioxide emissions and increase renewable energy usage. Empirical evidence generally shows that financial development has a significant effect on these two variables. However, little is known about how the financial strength of financial institutions influences them in the fight against climate change. This study aims to assess the effect of the financial strength of listed financial institutions on renewable energy consumption and carbon dioxide emissions in Ghana. Design/methodology/approach Regression analyses were used to estimate the effect of asset quality, credit management, return on equity/asset and firm size on renewable energy consumption and carbon dioxide emissions for data covering from 2009 to 2018. Findings The results revealed that return on equity reduces renewable energy consumption and increases carbon dioxide emissions. It is also found that credit risk management and asset quality positively influence renewable energy consumption but reduce carbon dioxide emissions in Ghana. Practical implications Policymakers need to identify profitable but less polluting ventures and draw the attention of financial institutions in the country. This may cause banks and other lending-giving institutions to desist from giving credits to support environmentally harmful ventures. Originality/value The paper assessed the effect that the financial strength of financial institutions has on renewable energy consumption and carbon dioxide emissions.
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