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The threshold effect of electricity consumption and urbanization on carbon dioxide emissions in Ghana

Paul Nayaga (Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
Frank Adusah-Poku (Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
John Bosco Dramani (Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
Paul Owusu Takyi (Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)

Management of Environmental Quality

ISSN: 1477-7835

Article publication date: 22 December 2021

Issue publication date: 10 March 2022

218

Abstract

Purpose

The quest for economic development has brought adverse effects on the environment through the release of greenhouse gases, such as carbon dioxide (CO2). This will counter the efforts to achieve the Sustainable Development Goals (SDGs) by 2030. This study, therefore, investigates the effect of electricity consumption and urbanization on CO2 emissions in Ghana. Electricity consumption and urbanization are among the factors that can be used to reduce CO2 emissions.

Design/methodology/approach

Following the STIRPAT framework with the Hansen (2000) least squares threshold estimation strategy, the study employed annual time series data from 1971 to 2019.

Findings

The study revealed a single threshold effect of both electricity consumption and urbanization on CO2 emissions. Electricity consumption intensity reduces CO2 emission when electricity consumption is below the threshold (6287GWh) but increases when consumption passes the threshold. However, urbanization exerts a positive influence on CO2 emissions regardless the level of urbanization (either before or after the threshold point). Again, the empirical results revealed that the urbanization threshold moderates the effect of electricity consumption on CO2 emissions.

Research limitations/implications

Policymakers have to consider redesigning the current urbanization mode to include some new-type urbanization elements.

Originality/value

The threshold effect of electricity consumption and urbanization on CO2 emissions in Ghana is examined using the Hansen (2000) least square method.

Keywords

Acknowledgements

Conflicts of interest/Competing interests

Funding: The authors did not receive support from any organization for the submitted work.

Financial interests: The authors declare they have no financial interests.

Citation

Nayaga, P., Adusah-Poku, F., Dramani, J.B. and Takyi, P.O. (2022), "The threshold effect of electricity consumption and urbanization on carbon dioxide emissions in Ghana", Management of Environmental Quality, Vol. 33 No. 3, pp. 586-604. https://doi.org/10.1108/MEQ-09-2021-0229

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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