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Environmental Kuznets Curve (EKC): Evidence from Ghana

In this study, EKC hypothesis is examined for Ghana for the period between 1971 and 2014. EKC hypothesis is examined under two nexus which are GDP, CO2 and energy consumption, and GDP, CO2, energy consumption and the square of GDP. Causal and long-term relationships between GDP, CO2, and energy consumption are examined for Ghana by Johansen cointegration and VAR Granger Causality/Block Exogeneity Wald Test. Long-term relationships between GDP, CO2, energy consumption and the square of GDP are examined by Johansen cointegration test. EKC hypothesis is not confirmed for Ghana, no causal relationships are found between GDP and energy consumption, and unidirectional causality running from energy consumption to CO2 is found. Neutrality hypothesis is confirmed for Ghana.

environmental Kuznets curve; Johansen cointegration test; VAR Granger Causality/Block Exogeneity Wald test; Ghana


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