Decomposition of the decoupling of CO2 emissions from economic growth in Ghana

Abstract

Abstract The study analysed the relationship between CO2 emissions and economic growth in Ghana, specifically by analysing Ghana's decoupling status from 1990 to 2018. The Tapio elasticity method and the logarithmic mean Divisia index decomposition technique were used in the study to find out what causes CO2 emissions in Ghana to change over time. The analysis revealed that CO2 emissions and economic growth have increased over the study period, with economic growth driven mostly by the services and industrial sectors in the last decade. The decoupling index analysis shows that weak decoupling status dominated the period 1990–2018, interspersed with strong decoupling and expansive negative decoupling status. Economic structure and energy intensity, instead, were found to promote the decoupling of CO2 emissions and economic growth. From the decomposition analysis, CO2 emissions in Ghana are driven on the average by economic activities, emission factors, and population growth. To achieve the Sustainable Development Goal 13, the study suggests that policies to cut CO2 emissions should focus on economic activities, factors that affect emissions, and population growth. Also, to decouple CO2 emissions from economic growth, the implementation of policies that change the structure of the economy and energy intensity towards renewable sources should be intensified in Ghana.

Keywords

• CO2 emissions
• Economic growth
• Decoupling
• Logarithmic mean Divisia index
• Tapio elasticity