Do renewable energy and fiscal policy impede or promote carbon emissions in Ghana? Empirical evidence from Bayesian and quantile-on-quantile regression approaches
Addressing environmental degradation highlights the need for coordinated actions to restore ecological balance. This study examines how fiscal policies (taxation and government expenditure), renewable energy consumption, financial development, and population growth influence carbon emissions in Ghan...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2025.2507133 |
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| Summary: | Addressing environmental degradation highlights the need for coordinated actions to restore ecological balance. This study examines how fiscal policies (taxation and government expenditure), renewable energy consumption, financial development, and population growth influence carbon emissions in Ghana from 1990 to 2020. Despite growing attention to sustainable development, the interplay between these factors in Ghana remains underexplored. Using Bayesian linear regression, Bayesian model averaging, and quantile-on-quantile regression, the findings indicate that taxation increases carbon emissions as higher tax revenues drive economic activities in carbon-intensive sectors. Conversely, government expenditure reduces emissions through public investment in sustainable projects. Renewable energy consumption is the most effective factor in mitigating emissions, showing a strong negative association with carbon emissions. Financial development and population growth are positively linked to emissions, suggesting that economic expansion and demographic shifts contribute to environmental pressures. These results emphasise the importance of green fiscal reforms and increased investment in renewable energy to balance economic growth with environmental sustainability. The study provides policymakers with insights to align fiscal and financial strategies with emission reduction targets and the Sustainable Development Goals. |
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| ISSN: | 2332-2039 |