| Abstrakt: |
The study investigates the relationship between carbon footprint and economic growth in Nigeria and Ghana over the period between 1990 and 2020 (31 years). The carbon footprint related variables used in the study include greenhouse gas emissions, renewable energy consumption, electricity consumption and trade openness. These variables have been regressed against gross domestic product per capita (a proxy for economic growth). The fully modified least square and panel dynamic least square have been employed for the main analysis of the study. The findings have revealed that greenhouse gas emissions and renewable energy consumption have a significant negative effect on economic growth in Nigeria and Ghana, while electricity consumption and trade openness have insignificant positive and negative relationships with economic growth respectively. The study recommends, among others, that the governments should initiate a carbon pricing law which should be implemented through tax policy specifically on the emissions from burning of biomass which consist of methane (CH4) and nitrous oxide (N2O) from the combustion of biomass in forest areas as well as carbon dioxide gas from the combustion of organic soils. High taxes will deter indiscriminate bush burning among others, resulting in lower environmental pollution and degradation. This measure will help reduce adverse greenhouse gas emissions and positively impact economic growth. [ABSTRACT FROM AUTHOR] |
