Environmental Science and Pollution Research

, Volume 23, Issue 13, pp 13508–13520 | Cite as

Carbon dioxide emissions, GDP, energy use, and population growth: a multivariate and causality analysis for Ghana, 1971–2013

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


In this study, the relationship between carbon dioxide emissions, GDP, energy use, and population growth in Ghana was investigated from 1971 to 2013 by comparing the vector error correction model (VECM) and the autoregressive distributed lag (ARDL). Prior to testing for Granger causality based on VECM, the study tested for unit roots, Johansen’s multivariate co-integration and performed a variance decomposition analysis using Cholesky’s technique. Evidence from the variance decomposition shows that 21 % of future shocks in carbon dioxide emissions are due to fluctuations in energy use, 8 % of future shocks are due to fluctuations in GDP, and 6 % of future shocks are due to fluctuations in population. There was evidence of bidirectional causality running from energy use to GDP and a unidirectional causality running from carbon dioxide emissions to energy use, carbon dioxide emissions to GDP, carbon dioxide emissions to population, and population to energy use. Evidence from the long-run elasticities shows that a 1 % increase in population in Ghana will increase carbon dioxide emissions by 1.72 %. There was evidence of short-run equilibrium relationship running from energy use to carbon dioxide emissions and GDP to carbon dioxide emissions. As a policy implication, the addition of renewable energy and clean energy technologies into Ghana’s energy mix can help mitigate climate change and its impact in the future.


Variance decomposition Carbon dioxide emissions Ghana Multivariate co-integration ARDL bound test Econometrics 



Chi square








Co-integrated equation





Std. Err.

Standard error


Error correction term



Vector error correction model


Error correction term


Short run


Long-run elasticities


Log likelihood


Sequential likelihood ratio


Akaike information criterion




Schwarz information criterion


Hannan-Quinn information criteria


Variance inflation factor


Local currency units




Grubbs’ test


Generalized Method of Moments


Fully-Modified Ordinary Least Squares


Dynamic Ordinary Least Squares

JEL classification

Q43 C33 O13 Q43 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2016

Authors and Affiliations

  1. 1.Sustainable Environment and Energy SystemsMiddle East Technical UniversityGuzelyurtTurkey

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