Neutralizing the surging environmental pollution amidst renewable energy consumption and economic growth in Ghana: Insights from ARDL and quantile regression analysis

Abstract

<p>This research explores the link between renewable energy consumption, economic growth, electricity accessibility, greenhouse gas emissions, and environmental degradation in Ghana from 1993 to 2020. Utilizing the autoregressive distributed lag (ARDL) model and quantile regression, it analyzes the validity of the Environmental Kuznets Curve (EKC) hypothesis. ARDL findings imply that renewable energy consumption (REC), greenhouse gas emissions (GHG), and power accessibility (ATE) have positive but statistically negligible long-term associations with CO<sub>2</sub> emissions. In contrast, economic growth (ECG) shows a slight negative link. This suggests that current attempts to promote renewable energy and minimize emissions may only partially lower CO<sub>2</sub> levels. Quantile regression demonstrates a positive correlation between REC and CO<sub>2</sub> emissions, counter to the idea that more renewable energy consumption decreases emissions. GHG strongly affects environmental pollution (EVP) at all levels, whereas power accessibility (ATE) has a favorable effect at lower levels but becomes negative at higher ones. Economic growth’s impact on pollution is detrimental at lower and median values but needs more relevance at more significant levels. These results imply the need for stricter laws, technical breakthroughs, emission limitations, and carbon pricing to mitigate pollution coming from economic expansion.</p>