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Investigating the pollution haven hypothesis in Ghana: An empirical investigation

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  • Solarin, Sakiru Adebola
  • Al-Mulali, Usama
  • Musah, Ibrahim
  • Ozturk, Ilhan

Abstract

The aim of this research is to investigate the pollution haven hypothesis (PHH) in Ghana utilizing CO2 emission as an indicator of air pollution for the period of 1980–2012. Moreover, we utilized gross domestic product (GDP), GDP square, energy consumption, renewable energy consumption, fossil fuel energy consumption, foreign direct investment, institutional quality, urbanization and trade openness as its main determinants. To achieve the goals of this research, different time series models were established utilizing the autoregressive distributed lag (ARDL) method. In addition to the fact that structural breaks are introduced into the estimation process, we contribute to the existing literature by focussing on a country that typifies the current scenario of increasing emission and foreign direct investment in the developing countries. The outcome of this research revealed cointegration which indicates the existence of long run relationship between the variables. Moreover, GDP, foreign direct investment, urban population, financial development and international trade have positive impact on CO2 emission, while institutional quality decreases emissions in Ghana. This indicates that PHH does exist in Ghana. A number of policy recommendations were provided for Ghana according to the results obtained.

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  • Solarin, Sakiru Adebola & Al-Mulali, Usama & Musah, Ibrahim & Ozturk, Ilhan, 2017. "Investigating the pollution haven hypothesis in Ghana: An empirical investigation," Energy, Elsevier, vol. 124(C), pages 706-719.
  • Handle: RePEc:eee:energy:v:124:y:2017:i:c:p:706-719
    DOI: 10.1016/j.energy.2017.02.089
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    Cited by:

    1. Muhammad Shahbaz & Mehmet Akif Destek & Michael L. Polemis, 2018. "Do Foreign Capital and Financial Development Affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(4), pages 20-50, October-D.
    2. repec:eee:energy:v:160:y:2018:i:c:p:1115-1123 is not listed on IDEAS
    3. repec:eee:eneeco:v:74:y:2018:i:c:p:843-857 is not listed on IDEAS
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    9. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    10. repec:sgh:erfinj:v:3:y:2018:i:1:p:55-78 is not listed on IDEAS
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    12. repec:eee:enepol:v:108:y:2017:i:c:p:271-280 is not listed on IDEAS
    13. Shahbaz, Muhammad & Balsalobre-Lorente, Daniel & Sinha, Avik, 2019. "Foreign Direct Investment–CO2 Emissions Nexus in Middle East and North African countries: Importance of Biomass Energy Consumption," MPRA Paper 91729, University Library of Munich, Germany, revised 19 Jan 2019.
    14. repec:eee:energy:v:134:y:2017:i:c:p:1029-1037 is not listed on IDEAS

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    CO2 emissions; Energy consumption; Foreign direct investment;

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