IJSRP, Volume 10, Issue 8, August 2020 Edition [ISSN 2250-3153]
Melaku Adinew Ayitehgiza
Carbon dioxide (CO2) emissions are a leading cause of environmental pollution and have been the most significant problems for the worldwide community. This study examines the dynamic causal relationships between CO2 emissions, industrial structure, economic growth and urbanization for the period 1980–2017 using the Autoregressive Distributed Lag (ARDL) bounds testing approach and Granger causality tests. Augmented Dickey-Fuller and the Phillips-Perron tests used to examine of unit roots of the variables. The results showed that industrial structure, economic growth and urbanization increases CO2 emissions. The result of Granger causality test indicated that there is a bidirectional causal relationship between industrial structure, economic growth, and urbanization and CO2 emissions. The results recommend that industrial structure, economic growth and urbanization were the main determinants of environmental pollution in Ethiopia and a series of policy actions related to industrial structure, economic growth and urbanization should be taken to reduction the environmental degradation.