Carbon emissions and ecological footprint effects of economic growth and natural resources in Ghana: implications for environmental sustainability

Abstract

Purpose This study assesses the impact of aggregate economic growth, sectoral growth and specific and total natural resource rents on carbon emissions and ecological footprint within the environmental Kuznets curve (EKC) framework. Design/methodology/approach Time series data for Ghana from 1990 to 2023 are used for the study. The fully modified ordinary least squares (FMOLS) and canonical cointegration regression (CCR) methods were employed for analyses. Findings The results reveal that economic growth initially has an increasing effect but later a decreasing impact on both indicators of environmental degradation. Also, aggregate and specific natural resources reduce both forms of environmental degradation, and the long-run relationship between the service sector and environmental degradation indicators confirmed the EKC hypothesis. Practical implications The findings suggest a need for the development and implementation of sector-specific policies to succeed in the fight against environmental degradation. Originality/value The analyses tested the EKC hypothesis – a nonlinear relationship between economic growth and sectoral growth (agricultural, industrial and service) on one hand, and carbon emissions and ecological footprint on the other hand. The environmental degradation effect of aggregate and specific natural resources is examined.