The causal relationship between agricultural production, economic growth, and energy consumption in Ghana

Abstract

Relevance. Transition to a low-carbon economy in order to effectively and efficiently exploit the natural resource base of a country is a daunting task, especially for developing countries due to their over-reliance on climate factors. This study focuses on the case of Ghana and assesses the impact of several indicators – agricultural production, economic growth and energy consumption – on the environment. Research objectives. The aim of the study is to describe the causal relationship between agriculture production, economic growth, energy consumption and environmental degradation. Data and Methods. Using time-series data from 1975 to 2014, the study employed the ARDL model to achieve its objectives. Results. The empirical results from the bounds test provide evidence of a long-run association when the covariates are regressed on environmental degradation. The significance of the error correction term at 1% level of significance confirms this assertion. The result further shows that there is evidence of a unidirectional short-run Granger causality and a bidirectional Granger causality among the variables. There was, however, no evidence of Granger causality between economic growth, livestock production index, crop production index and environmental degradation. Conclusion. It is recommended that policy makers should prioritize the adoption of environmentally friendly technologies both in the crop and livestock sub-sectors to ensure that while the food needs of citizens are met, environmental quality is not compromised. Moreover, it is important to ensure energy use efficiency in production.

Does the Agricultural Ecosystem Cause Environmental Pollution in Azerbaijan?

“…This result means that a 1% increase in AEC causes a 0.08% decrease in agricultural greenhouse gas emissions, in the long run, other variables being constant. These results are in line with the results of Appiah et al (2018) and Chandio et al (2020), but it differs from that of Ben Jebli and Ben Joussef (2017), Liu et al (2017), Agboola and Bekun (2019), Ali et al (2020) and Koshta et al (2020). Studies examining the relationship between energy consumption and CO 2 emissions have mostly found that energy consumption increases CO 2 emissions.…”

“…The crop production index (CPI) has a positive and statistically significant effect on agricultural emissions, and this result implies a 1% increase in the CPI increases agricultural emissions by 0.37%. This result is supported by Sarkodie and Owusu (2017), Appiah et al (2018), Ali et al (2020), Chandio et al (2020), and Leitao and Balogh (2020). The incorrect tillage, irrigation methods, overuse of chemical fertilizers, and pesticides increase the negative effects of crop production on the environment.…”

“…A 1% increase in LPI increases the agricultural greenhouse gas emissions by 0.31%. The positive relationship between LPI and agricultural emissions is supported by Sarkodie and Owusu (2017), Appiah et al (2018), Ali et al (2020), Chandio et al (2020), Leitao andBalogh (2020), andAyyıldız andErdal (2021). The agricultural export index (AEI), the last of the AMI variables, has a positive but insignificant effect on agricultural emissions.…”

“…Their findings revealed that GDP, arable land, and fertilizer consumption positively and significantly affect carbon dioxide emissions. Ali et al (2020) investigated the impact of agricultural production and agricultural energy consumption on carbon dioxide emissions in Ghana by the ARDL bounds test and Granger causality test. According to the results of the ARDL test, crop and livestock production index and agricultural energy consumption have a positive and statistically significant effect on CO 2 emissions in the long run.…”

Revisiting the Energy Consumption, Economic Growth and the Environmental Kuznets Curve in Developing Countries

“…In another study, Ali and Amfo (2021) compared the economic and ecological values of selected countries from 1960 to 2018 and concluded that renewable energy consumption leads to a decrease in carbon emissions. Finally, Ali and Anufriev (2020) explored the causal relationship between fossil fuels and emissions in Ghana using data from 1975 to 2014 and found that fossil fuels exacerbate carbon emissions.…”