The role of clean energy in enhancing the environmental Kuznets Curve: empirical evidence from Ghana's hydropower industry
摘要
The paper studies environmental quality's linear and heterogeneous relationship to Ghana's hydropower (HPE) energy generation. It also investigates the moderating role of population growth (PGOP) and economic growth (ECOG) in the relationship in the period of 1990Q1 to 2023Q4. It employs the autoregressive distributed lag (ARDL) model of the linear relationship and the quantile-on-quantile (QQ) method to analyze the heterogeneous relationship. The evidence reveals the strong long-run relationship between HPE and environmental quality. Also, ECOG harms the emission level, supporting the Environmental Kuznets Curve (EKC) hypothesis. As Ghana's energy-led growth theory predicted, HPE and ECOG also complement each other in improving environmental quality in higher quantiles. The study fills the existing gap in the literature as it addresses the linear and heterogeneous dynamics of HPE and ecological quality. The evidence supports the efficacy of HPE in complementing clean energy efforts and environmental sustainability in Ghana. Thus, HPE helps advance ecological quality, leading to a more sustainable future and growth. Hence, this study gives valuable recommendations for policymakers on how hydropower could improve environmental performance in Ghana and thus further the nation's clean energy objectives.