Environmental Science and Pollution Research

, Volume 23, Issue 10, pp 9934–9943 | Cite as

Multivariate co-integration analysis of the Kaya factors in Ghana

  • Samuel Asumadu-SarkodieEmail author
  • Phebe Asantewaa Owusu
Research Article


The fundamental goal of the Government of Ghana’s development agenda as enshrined in the Growth and Poverty Reduction Strategy to grow the economy to a middle income status of US$1000 per capita by the end of 2015 could be met by increasing the labour force, increasing energy supplies and expanding the energy infrastructure in order to achieve the sustainable development targets. In this study, a multivariate co-integration analysis of the Kaya factors namely carbon dioxide, total primary energy consumption, population and GDP was investigated in Ghana using vector error correction model with data spanning from 1980 to 2012. Our research results show an existence of long-run causality running from population, GDP and total primary energy consumption to carbon dioxide emissions. However, there is evidence of short-run causality running from population to carbon dioxide emissions. There was a bi-directional causality running from carbon dioxide emissions to energy consumption and vice versa. In other words, decreasing the primary energy consumption in Ghana will directly reduce carbon dioxide emissions. In addition, a bi-directional causality running from GDP to energy consumption and vice versa exists in the multivariate model. It is plausible that access to energy has a relationship with increasing economic growth and productivity in Ghana.


Multivariate co-integration Kaya factors Carbon dioxide emission Causality Ghana 



Total carbon dioxide emissions


Gross domestic product


Total primary energy consumption


Vector error correction


Vector error correction model


Vector autoregression


Ordinary least squares


International monetary fund


Sequential likelihood ratio


Akaike information criterion


Schwarz information criterion


Hannan-Quinn information criteria


Final prediction error


Million metric tons


Quadrillion British thermal units




Gross national income


Human development index


Sustainable development goal


Millennium development goals


Chi square






Co-integrated equation



Std. Err.

Standard error

Greek letter



JEL classifications




The authors would like to thank the editor, Dr. Philippe Garrigues, and the three anonymous reviewers for their relentless effort and useful comments. Any errors or inconsistencies in the paper are the sole responsibility of the authors.


  1. Agung IGN (2011) Time series data analysis using EViews. WileyGoogle Scholar
  2. Asumadu-Sarkodie S, Owusu P (2016a) Feasibility of biomass heating system in Middle East Technical University, Northern Cyprus Campus. Cogent Eng. doi: 10.1080/23311916.2015.1134304 Google Scholar
  3. Asumadu-Sarkodie S, Owusu PA (2016b) The Relationship between Carbon Dioxide and Agriculture in Ghana, a Comparison of VECM and ARDL Model Environmental Science and Pollution Research doi: 10.1007/s11356-016-6252-x
  4. Asumadu-Sarkodie S, Owusu PA (2016c) The potential and economic viability of solar photovoltaic in Ghana energy sources, part A: recovery, utilization, and environmental effectsGoogle Scholar
  5. Asumadu-Sarkodie S, Owusu PA (2016d) The potential and economic viability of wind farm in Ghana energy sources, part A: recovery, utilization, and environmental effectsGoogle Scholar
  6. Asumadu-Sarkodie S, Owusu PA, Jayaweera HM (2015a) Flood risk management in Ghana: a case study in Accra. Adv Appl Sci Res 6:196–201Google Scholar
  7. Asumadu-Sarkodie S, Owusu PA, Rufangura P (2015b) Impact analysis of flood in Accra, Ghana. Adv Appl Sci Res 6:53–78Google Scholar
  8. Chang C-C (2010) A multivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China. Appl Energy 87:3533–3537CrossRefGoogle Scholar
  9. EIA (2015) International Energy Statistics - EIA.
  10. Energy Commission G (2015) Ghana energy commission report. Accessed 29 May 2015
  11. Fei L, Dong S, Xue L, Liang Q, Yang W (2011) Energy consumption-economic growth relationship and carbon dioxide emissions in China. Energy Policy 39:568–574. doi: 10.1016/j.enpol.2010.10.025 CrossRefGoogle Scholar
  12. Granger CW (1969) Investigating causal relations by econometric models and cross-spectral methods. Econometrica: J Econ Soc 424–438Google Scholar
  13. Gujarati D (2003) Basic econometrics. McGraw-Hill Companies, New YorkGoogle Scholar
  14. Gul S, Zou X, Hassan CH, Azam M, Zaman K (2015a) Causal nexus between energy consumption and carbon dioxide emission for Malaysia using maximum entropy bootstrap approach. Environ Sci Pollut Res 1–13Google Scholar
  15. Gul S, Zou X, Hassan CH, Azam M, Zaman K (2015b) Causal nexus between energy consumption and carbon dioxide emission for Malaysia using maximum entropy bootstrap approach. Environ Sci Pollut Res Int 22:19773–19785. doi: 10.1007/s11356-015-5185-0 CrossRefGoogle Scholar
  16. Huang B-N, Hwang MJ, Yang CW (2008) Causal relationship between energy consumption and GDP growth revisited: a dynamic panel data approach. Ecol Econ 67:41–54. doi: 10.1016/j.ecolecon.2007.11.006 CrossRefGoogle Scholar
  17. Jammazi R, Aloui C (2015) On the interplay between energy consumption, economic growth and CO2 emission nexus in the GCC countries: a comparative analysis through wavelet approaches. Renew Sust Energ Rev 51:1737–1751. doi: 10.1016/j.rser.2015.07.073 CrossRefGoogle Scholar
  18. Kaya Y (1990) Impact of carbon dioxide emission control on GNP growth: interpretation of proposed scenarios IPCC energy and industry subgroup, response strategies working group. Paris 76Google Scholar
  19. Lozano S, Gutiérrez E (2008) Non-parametric frontier approach to modelling the relationships among population, GDP, energy consumption and CO2 emissions. Ecol Econ Ecological Economics 66:687–699. doi: 10.1016/j.ecolecon.2007.11.003 CrossRefGoogle Scholar
  20. Mahadeva L, Robinson P (2004) Unit root testing to help model buildingGoogle Scholar
  21. Phillips PC, Perron P (1988) Testing for a unit root in time series regression. Biometrika 75:335–346CrossRefGoogle Scholar
  22. Qureshi MI, Rasli AM, Zaman K (2016) Energy crisis, greenhouse gas emissions and sectoral growth reforms: repairing the fabricated mosaic. J Clean Prod 112:3657–3666. doi: 10.1016/j.jclepro.2015.08.017 CrossRefGoogle Scholar
  23. Remuzgo L, Sarabia JM (2015) International inequality in CO2 emissions: a new factorial decomposition based on Kaya factors. Environ Sci Pol 54:15–24. doi: 10.1016/j.envsci.2015.05.020 CrossRefGoogle Scholar
  24. Salahuddin M, Gow J, Ozturk I (2015) Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust? Renew Sust Energ Rev 51:317–326. doi: 10.1016/j.rser.2015.06.005 CrossRefGoogle Scholar
  25. Soytas U, Sari R (2009) Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecol Econ 68:1667–1675. doi: 10.1016/j.ecolecon.2007.06.014 CrossRefGoogle Scholar
  26. StataCorp (2015) Stata: release 14. StataCorp LP, College StationGoogle Scholar
  27. United Nations Development Programme (2015) Human development reportsGoogle Scholar
  28. UNTC United Nations Treaty Collection. Accessed 14 November 2015
  29. World Bank Ghana | Data. Accessed 12 November 2015
  30. Zhang X-P, Cheng X-M (2009) Energy consumption, carbon emissions, and economic growth in China. Ecol Econ 68:2706–2712. doi: 10.1016/j.ecolecon.2009.05.011 CrossRefGoogle Scholar
  31. Zou X, Azam M, Islam T, Zaman K (2015) Environment and air pollution like gun and bullet for low-income countries: war for better health and wealth. Environ Sci Pollut Res Int. doi: 10.1007/s11356-015-5591-3 Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2016

Authors and Affiliations

  • Samuel Asumadu-Sarkodie
    • 1
    Email author
  • Phebe Asantewaa Owusu
    • 1
  1. 1.Sustainable Environment and Energy Systems, Middle East Technical University, Northern Cyprus CampusGuzelyurtTurkey

Personalised recommendations