Browsing by Author "Oteng-Abayie, Eric Fosu"

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    Decomposition and drivers of energy intensity in Ghana
    (Energy Strategy Reviews, 2023) Oteng-Abayie, Eric Fosu; Dramani, John Bosco; Adusah-Poku, Frank; Amanor, Kofi; Quartey, Jonathan Dagadu; 0000-0002-4598-2066; 0000-0001-8886-7853; 0000-0001-5513-4530; 0000-0002-6937-847X; 0000-0002-7333-2300
    Ghana’s energy intensity trends point to a high energy use necessary to generate a unit of output. The country has also witnessed massive investment in energy infrastructure geared towards meeting its lower middle-income status and achieving universal access to energy. The logical question is: what is the contribution of the cur rent economic and technical infrastructure level to the country’s energy intensity? The current study addresses this question by employing the Logarithmic Mean Divisia Index I (LMDI) to decompose energy intensity in Ghana from 2000 to 2020 to examine its trends and sources. The impact of economic-technical factors on aggregate energy intensity in Ghana is then investigated with the aid of the ARDL estimation technique to unearth potential asymmetric and symmetric effects. The decomposition analysis indicates an oscillating pattern in energy in tensity in Ghana promoted by structural effect and labour productivity respectively. The results suggest that renewable energy, rural electrification, and digitisation have a direct and secondary long-run asymmetric effect on aggregate energy intensity with labour productivity and household consumption working as the transmission channels. The study recommends the need for government to pursue clean and eco-friendly practices in its economic development agenda for a meaningful reduction in energy intensity.
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    Effects of trade liberalization on the global decoupling and decomposition of CO2 emissions from economic growth
    (Heliyon, 2024) Baajike, Franklin Bedakiyiba; Oteng-Abayie, Eric Fosu; Dramani, John Bosco; Amanor, Kofi; 0000-0002-1603-5027; 0000-0002-4598-2066; 0000-0002-3640-2664; 0000-0002-6937-847X
    Evidence of climate change is widespread and severe across all parts of the world. This poses a threat to humanity, and the entire environment. Appropriate policies are therefore required to help reduce greenhouse gas emission levels, limit the rate of global warming and its impact on climate change while pursuing national growth targets. This study employs the Tapio decoupling method to analyse the decoupling relationship (DR) between economic growth and carbon dioxide (CO2) emissions from 1998 to 2018. We also apply the Logarithmic Mean Divisia Index (LMDI) decomposition method on an extended Kaya identity to analyse CO2 emissions drivers in 145 countries. Last, the study examined the relative impacts of trade intensity and trade efficiency on the DR between economic growth and CO2 emissions. The results revealed that regions with relatively many developing and emerging countries (i.e., SSA, EAP, LAC, MENA, and SA) generally performed Weak Decoupling (WD), Expansive Negative Decoupling (END) and Expansive Coupling (EC), and the decoupling process was largely unstable. The ECA and NA regions on the other hand, which are typically composed of developed economies performed stable WD and Strong Decoupling (SD) statuses throughout the study period. The evidence further revealed that while trade intensity, activity, population, output per carbon emission and Carbon Intensity (CI) effects promote CO2 emissions, trade efficiency and energy intensity (EI) hinder emissions. We recommend that developing countries should enforce laws and cooperate with the developed economies to gain access to green technology to promote environmental sustainability.
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    The impact of external debt on economic growth and investment in Ghana: 1984 - 1999
    (2002-11-29) Oteng-Abayie, Eric Fosu
    External debt of many low-income developing countries has increased significantly in the past two decades. The debt burden places severe constraints on the economic recovery of a group of severely indebted low-income countries (SILICS) currently classified as HIPCs, despite years of structural adjustment efforts. With economic performance stagnating around 4.5% of GDP, debt servicing continues to put serious fiscal constraints on government budget, limiting resources available for public investment in basic services which should crowd in private investment. This study presents a country case study of Ghana’s external debt profile (magnitude, term-structure, sources and determinants.) and its impacts on economic growth and investment. The descriptive analysis of the debt reveals that Ghana’s external debt is mainly official debt from multilateral sources. Public sector debt constitutes over 90% of long term debt outstanding, indicating that the public sector (government) plays a dominant role in the social economic development of Ghana. The findings also indicate that debt to export and debt to GDP ratios are highly unsustainable (indicating a debt overhang problem) while total debt service ratios are relatively low. Using time series data for the period 1984 to 1999, the study found that external debt accumulation has a negative impact on economic growth and investment- revealing the existence of a debt overhang problem. The results generally did not support a ‘crowding out’ effect of debt servicing on GDP growth and investment. Government fiscal deficit was found to work against both investment and GDP growth. Macroeconomic stability and credible policy (measured by inflation and real exchange rate) have positive impacts on investment and growth. From policy perspective, the excessive debt overhang problem implied that the country is insolvent and needs debt relief under the current enhanced-HIPC initiative. Debt relief under the HIPC initiative, however, needs to be complemented with fiscal discipline, institutional reforms, and credible macroeconomic policy implemented on a sustained basis to rebuild investor confidence and attract private investment to Ghana.