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Environmental Degradation Effect of Agricultural and Industrial Growth in Ghana

Journal of Rural and Industrial Development

Volume 2 Issue 2

Published: 2014
Author(s) Name: Paul Adjei Kwakwa, Frank Sena Arku, Solomon Aboagye | Author(s) Affiliation:
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Abstract

Empirical examination into the existence of the Environmental Kuznets Curve (EKC) have focused principally on aggregate economic growth and environmental degradation with little knowledge on its potential existence in the individual sectors of the economy particularly the extreme cases of agricultural and industrial sectors. Such evidence could usefully shape policy instruments aimed at ensuring environmental sustainability a midst the quest to promote growth in these sectors. The paper therefore examines the effect of agricultural growth, industrial growth on environmental degradation in Ghana. Relying on data from the World Development Indicators for the period 1971-2008 and employing the Johansen co-integration technique, a long run EKC hypothesis is confirmed in the agricultural sector as well as the industrial sector.

Keywords: Environmental Kuznets Curve, Agricultural Growth, Industrial Growth, Ghana

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