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Effect of natural resources extraction on energy consumption and carbon dioxide emission in Ghana

Author

Listed:
  • Kwakwa, Paul Adjei
  • Alhassan, Hamdiyah
  • Adu, George

Abstract

Even though many studies have attempted to understand the drivers of carbon dioxide emission and energy consumption to help tackle environmental issues, not much has been done to estimate the effect of natural resources extraction on these two variables. This study analyzes the long run environmental effect of natural resources extraction in Ghana under the Stochastic Impacts by Regression on Population, Affluence and Technology model for the period of 1971-2013. Estimation results indicate that income, urbanization, and extraction of natural resources contribute to Ghana’s environmental problems of rising carbon emission and energy consumption. However, international trade is found to reduce carbon emission. The implications from the results are discussed and the paper recommends among other things the need to strictly enforce laws regulating extractive activities in the country to ensure safe environment; and also to raise tariff and non-tariff barriers on products that do not promote friendly environment and vice versa.

Suggested Citation

  • Kwakwa, Paul Adjei & Alhassan, Hamdiyah & Adu, George, 2018. "Effect of natural resources extraction on energy consumption and carbon dioxide emission in Ghana," MPRA Paper 85401, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:85401
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    File URL: https://mpra.ub.uni-muenchen.de/85401/1/MPRA_paper_85401.pdf
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    References listed on IDEAS

    as
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    5. Paul Adjei Kwakwa & Edward Debrah Wiafe & Hamdiyah Alhassan, 2013. "Households Energy Choice in Ghana," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(3), pages 96-103.
    6. Roula Inglesi-Lotz & Luis Diez del Corral Morales, 2017. "The Effect of Education on a Country’s Energy Consumption: Evidence from Developed and Developing Countries," Working Papers 201733, University of Pretoria, Department of Economics.
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    More about this item

    Keywords

    CO2 emission; energy consumption; Ghana; STIRPAT model; mining; natural resources;

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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