Causal Examination of Carbon Emissions and Economic Growth for Sustainable Environment: Evidence from Ghana

Abstract

This study aligns with the 2030 Sustainable Development Goals (SDGs) 8, and 13 to evaluate the causal relationship between carbon emissions and economic growth in Ghana from 1960 to 2018. Using a battery of econometric techniques, findings indicate, among others, that economic growth is a positive predictor of carbon emissions. Inferences from these estimations point to a growth-led emissions nexus in Ghana. The causal analysis further provides evidence, though weak, that economic growth Granger-cause carbon emissions. Hence, policymakers should encourage coal gasification in Ghana, offering better environmental benefits at a lower cost to address the atmospheric build-up of carbon dioxide.