Environmental Engineering Research

Korean Society of Environmental Engineers (대한환경공학회)
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The relationship between carbon dioxide, crop and food production index in Ghana: By estimating the long-run elasticities and variance decomposition

  • Sarkodie, Samuel Asumadu (Department of Environmental Science, Faculty of Science and Technology, Macquarie University) ;
  • Owusu, Phebe Asantewaa (Sustainable Environment and Energy Systems, Middle East Technical University, Northern Cyprus Campus)
  • Received : 2016.11.03
  • Accepted : 2017.01.05
  • Published : 2017.06.30
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Abstract

The study estimated the relationship between carbon dioxide, crop and livestock production index in Ghana: Estimating the long-run elasticities and variance decomposition by employing a time series data spanning from 1960-2013 using both fit regression and ARDL models. There was evidence of a long-run equilibrium relationship between carbon dioxide emissions, crop production index and livestock production index. Evidence from the study shows that a 1% increase in crop production index will increase carbon dioxide emissions by 0.52%, while a 1% increase in livestock production index will increase carbon dioxide emissions by 0.81% in the long-run. There was evidence of a bidirectional causality between a crop production index and carbon dioxide emissions and a unidirectional causality exists from livestock production index to carbon dioxide emissions. Evidence from the variance decomposition shows that 37% of future fluctuations in carbon dioxide emissions are due to shocks in the crop production index while 18% of future fluctuations in carbon dioxide emissions are due to shocks in the livestock production index. Efforts towards reducing pre-production, production, transportation, processing and post-harvest losses are essential to reducing food wastage which affects Ghana's carbon footprint.

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References

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