Studies on energy and environmental economics
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Date
November, 2016
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Abstract
This thesis addressed three empirical questions in environmental and energy economics
in three chapters. The destruction of the environment through carbon emission has gained
the attention of policy makers and environmentalists. The African continent is low
emitter of CO2, contributing comparatively little to climate change. However, it is widely
accepted that the continent is very vulnerable to the effects of climate change. As a result
although the share of Sub-Saharan Africa in global emission of CO2 is historically low,
the rising trend in its share of global emissions calls for a concern. In particular, the trend
of CO2 emission on the continent has been increasing with the rate of economic growth,
trade openness and energy consumption.
The first empirical chapter (Chapter Three) thus analyses the effects of
income, energy consumption and trade openness on carbon emission in Sub-Saharan
Africa (SSA). Empirical estimations from the fully modifies ordinary least squares
(FMOLS) and dynamic ordinary least squares (DOLS) confirmed the existence of the
Environmental Kuznets Curve Hypothesis for the SSA region with an estimated (income
per capita) turning point values ranging from US$ 1,142.85 to US$ 5,687.09.
Furthermore, the paper established a nonlinear relationship between trade and emission
and concludes that both income and non-income factors account for carbon emission in
SSA. However, income and energy consumption have the greatest effect. The results of
the chapter imply among other things, the need to promote economic growth and
development as a means of reducing carbon emission. Also opening up the sub region for
international trade will in the long run help reduce emission. Again it is imperative for
countries in the region to embrace more energy conservation policies in order to reduce
emissions.
The second empirical chapter (Chapter Four) investigates the determinants of
the rising fossil fuel consumption for three Sub-Saharan African countries - Ghana,
Kenya and South Africa - to help manage the rising consumption fossil fuel consumption.
The data for Ghana revealed income, trade and urbanization increases fossil fuel
consumption while efficiency of the industrial and service sectors reduce its
consumption. The Kenyan results however, showed income, industrial efficiency and
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urbanization contribute positively to fossil fuel consumption but trade, efficiency of the
service sector and price reduce fossil fuel consumption. The consumption of fossil fuel in
South Africa is found to be influenced by income, urbanization, industrial efficiency,
efficiency of the service sector and trade. Among other things, the results of the study
suggest efforts should be geared towards strengthening the energy efficiency system in
each of these countries to help reduce fossil fuel consumption. In addition, adequate
measures should be put in place to decentralize growth and other lucrative activities in
the countries under study to reduce the population pressure in the urban centers so as to
curb the high level of fossil fuel consumption in such urbanized areas. Also, it is
necessary that tariff and non-tariff barriers on products that do not promote energy
efficiency are raised and vice versa.
The third empirical chapter (Chapter Five) probes into the electricity
conservation behaviour for rural and urban households in the Ashanti region of Ghana.
Based on a cross-sectional data, it was observed that although both urban and rural
households engage in electricity conservation practices, rural households have the
stronger behaviour. Through an analysis of conservation behaviour towards the usage of
four households’ appliances, it was noted that the effects of demographic features,
dwelling characteristics, information, environmental concern, subjective norms and
perceived benefits is somehow dependent on the location of households and the appliance
in question. The outcome of the study calls for the need to create more awareness by
having more campaigns on conservation for the households in the study area. Also, it tells
that influential family members and role models in these areas should be involved in the
conservation campaign. Also, the results highlight the need to have different conservation
measures tailored towards the usage of different appliance in the study area.
Description
A thesis submitted to the School of Graduate Studies, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the award of the Degree of Doctor of Philosophy in Economics.