The Causal interactions of Urban Population, and Economic Growth on the Environment of Ghana.

Kofi Baah Boamah, Jianguo Du, Patrick Sarpong Boateng, Isaac Asare Bediako, Claudia Nyarko Mensah

Abstract


This study seeks to explore the causal effect of urban population and economic growth on the environment of Ghana, using a time series data for the period 1980-2014. The Max Eigen-value Johansen cointegration test failed to confirm a long-run cointegration relationship between environmental pollution and economic growth for the case of Ghana. Hence, the direction of causality among the variables was conducted using the VAR Granger Causality Test. The findings of the VAR Granger causality revealed the presence of a bi-directional causality between these paramount variables: carbon dioxide emission (CO2) and urbanisation (URB); and between economic growth (Y) and urbanisation (URB).This study advocates that Ghana adheres to more stricter environmental regulations in order to control high pollution firms in the residential and commercial sectors, in her quest to mitigate environmental pollution issues even as the economy advances. Furthermore, our study reiterate that the human capacity of Ghana is empowered with the requisite productive skills to boost productivity of her industries.

 

 


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