Chapter 1 Introduction

湖北工理大学
HUBEI UNIVERSITY OF TECHNOLOGY

ARTICLE PAPER

Topic: Economic Growth Strategy and Carbon Emission level in

Liberia

School:

Major:

Student Name: Yealu G Kogar

ID No.: 2221573205

Supervisor: Professor Guan

 significant impacts on our everyday lives. It traditionally refers to an artificial
creation of human-like intelligence that can learn, plan, perceive, or process
natural language to create immense socioeconomic opportunities, while also
ABSTRACT
posing ethical and socio-economic challenges. As AI is an Internet enabled
technology, the Internet Society recognizes that understanding the
opportunities and challenges ABSTRACT
associated with AI is critical to developing an
Internet that people can trust.

As one of the developing countries in Africa, Liberia is heading to the industrialization

process from the agriculture-based economy. This can be seen from the actual situation
in the country as it is expanding the factories and high scale manufacturing industries.
Therefore, it is safe to say that the country is really heading to the mass industrialization
through manufacturing. This implies Liberia is becoming one of the technology hubs in
Africa. Due to the country’s plan to improve the industrialization policy, the foreign
investors and the companies are investing in the country.
As it is obvious, whenever there are manufacturing and industry, it is clear that
there is going to have a carbon emission that leads to the global climate change.
Therefore, Liberia is also planning the carbon emission reduction policy. Regarding to
the climatic change that is happening currently, the carbon emission record and
reduction system is implemented in the country.
This article is going to research about the carbon emission policy and its approach
to using renewable energy source of the country. The study covers the tracking system
of the carbon emission, balancing procedure, and the reduction step being taken in order
to play its part in the green economy movement which is creating a huge concern
among the countries in the world.
The main human activities that lead to the high carbon emission in Liberia are also
discussed. These are agricultural activities, manufacturing, mining, construction,
transportations, and other business activities.
This research is going to include the details of the energy usage and net-zero
carbon emission approach of Liberia. In addition, it will also include the global carbon
emission rate and the comparison of the country’s carbon emission level with respect to
the rest of the world countries.

II
 ABSTRACT

Keywords: Carbon emission, climatic change, renewable energy, industry,

manufacturing, net -zero carbon emission.

V
 Contents

Contents

ABSTRACT....................................................................................................................II
Chapter 1 Introduction...................................................................................................1
1.1 Research Significance.....................................................................................1
1.2 Research methodologies..................................................................................1
Chapter 2 Economic Activity Management and Carbon Emission Rate in Liberia. 2
2.1 Introduction.....................................................................................................2
2.2 Major Economic Sectors in Liberia................................................................2
2.2.1 Agriculture and Forestry......................................................................2
2.2.2 Mining..................................................................................................2
2.2.3 Processing Industry..............................................................................2
2.3 The Economic Sector Management and Carbon Emission Reduction
Approach 3
Chapter 3 Energy Sector Expansion Strategy in Liberia............................................5
3.1 Introduction and Background of Liberian Energy Sector...............................5
3.2 Energy Sector Expansion and its Impact on Liberian GHG Emission............5
3.2.1 Diesel Generation.................................................................................6
3.2.2 Heavy Fuel Oil (HFO) Generation.......................................................6
3.2.3 Hydropower Generation.......................................................................7
3.2.4 Renewable Energy Sources Generation...............................................8
3.3 Challenges and Suggested Solutions...............................................................8
3.4 Summary.........................................................................................................9
Chapter 4 Results and Analysis....................................................................................12
4.1 Introduction...................................................................................................12
4.2 Results and Discussions................................................................................12
4.3 Summary.......................................................................................................14
Chapter 5 Conclusions..................................................................................................15
5.1 Future Research Direction.............................................................................15
Acknowledgments..........................................................................................................16
References......................................................................................................................17

IV
Contents

V
Contents

VI
 Chapter 1 Introduction

1.1 Research Significance

This paper research article emphasizes on the economic development of Liberia
and its impact on the climatic change of the country and in the world. This impact is
analyzed based on the current economic activity of the country and its future plan
regarding the economic development and reducing its effect on the global warming.
Liberia the country located on the western coast of Africa. Africa. It is bordered
with Sierra Leone, Guinea, Ivory Coast, and Atlantic Ocean. The population number of
Liberia is five million. The country covers 111,369 square kilometers. The climatic
condition of the country is, its most land area is covered with the equatorial rainfall.
This is mostly in the southern part of the country. Therefore, the country has a hot year-
round season especially in the southern part.
As the most of the developing African countries, the economy of Liberia is mainly
based on agriculture. Agriculture covers the country’s GDP 38%. Mining and
manufacturing sectors are also the major economic activities next to the agriculture in
the country. The main energy source in the country is electricity, and the vast majority
of the energy sources are provided by the state-owned electricity services. This
electricity sources are mainly from the hydroelectric power plants and fuel oil power
plants with more powerplants and to be completed in the near future.

1.2 Research methodologies

The major approach to study this article is studying the economic development
direction of Liberia and analyzing its effect on the global climatic change.
 Economic Growth Strategy and Carbon Emission level in Liberia

Chapter 2 Economic Activity Management and Carbon Emission Rate

in Liberia

2.1 Introduction
The many developing countries in Africa, the economy of Liberia is based on the
agricultural activities with lower manufacturing and industrial activities. This is because
of several factors that the country has faced in the past and encountering currently.

2.2 Major Economic Sectors in Liberia

As implied above, the major economic activities of Liberia are mostly based on the
natural resources. They are forestry, land use, agriculture, mining, processing industry,
and tourism industry.

2.2.1 Agriculture and Forestry

The majority of Liberian population are based on the agricultural activities and
forestry. The major agricultural activity in the country includes shifting cultivation,
small holder farms, plantation of the palm oil, cassava, banana, cocoa, rice, rubber,
sugar cane, and so on. Forestry activities mainly involves charcoal production and
commercial logging. According to the 2020 national geographical data of Liberia, forest
contribute 10% to the national economy since the country has the highest forest cover
among west African countries.

2.2.2 Mining
As Liberia is rich in natural resources, mining is also one of the major economic
activities in the country. Most of the mining activities are done to extract oil, gas, and
mineral extraction. The primary purpose of mining is for the exportation reason.
However, the extraction of the oil and fuel gas is to process and generate the energy
source for electrical energy.

2.2.3 Processing Industry

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 Chapter 2 Economic Activity Management and Carbon Emission Rate in Liberia

Recently, Liberia has small-scale industry involving the manufacturing of mini-

items such as household utensils, clothes and others. This processing industry also
includes the large-scale energy processing industry.

2.3 The Economic Sector Management and Carbon Emission

Reduction Approach
As explained in section 2.2, there are different economic activities in Liberia. In
order to facilitate and maintain the smooth development of the economy through the
lesser effect on the environment, the country has implemented different policies plans.
This section mostly focuses the economic sector management policies of the country
regarding t the green economic plan. The economic activities of Liberia are highly
dependent on natural resources. In the industrial sector, Liberia remains
underdeveloped. Therefore, more dependency of the country on the natural resources
has direct impact with the climatic change and, therefore the carbon emission.
According to the International Energy Agency (IEA) reports, carbon emissions in
Liberia are largely driven by the combustion of fossil fuels in transportation, agriculture,
and land use. This means, the country needs strong carbon emission mitigation policies
on the sectors mentioned. The data in Figure 2-1 shows the major economic activities
and their respective carbon emission rate in the year 2012. According to the data, land
use and forestry take up 90% of the total carbon emission of the country. Other sectors
such as agriculture, industrial process, waste, and energy only take 10% combined.
However according to the recent unconfirmed information, the energy sector is
contributing the leading amount of the carbon into the atmosphere compared to the
other economic sectors.
Liberia is currently in the process of developing its national strategy and capacity
to
reduce greenhouse gas emissions from forest loss and degradation, through support
from the World Bank´s Forest Carbon Partnership Facility (FCPF) and other donors.
Designing and implementing an effective strategy which will directly contribute to
long-term sustainable economic growth, requires both consistent long-term financial

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 Economic Growth Strategy and Carbon Emission level in Liberia

commitments and a transparent financial tracking system to show all funds and
activities supported to date.

Figure: 2-1 Economic Sectors and their Carbon Emission Level

4
 Chapter 3 Energy Sector Expansion Strategy in Liberia

Chapter 3 Energy Sector Expansion Strategy in Liberia

3.1 Introduction and Background of Liberian Energy Sector

As most developing countries of the world, large population of Liberia relies on
traditional sources of energy such as fuel gas and charcoal. On the other hand, the
smaller population enjoys the use of electricity. Insufficient access to reliable and
affordable electricity affected the economic growth in Liberia. Only 2 percent of the
population of Liberia has electricity; one of the lowest electrification rates in the world
(USAID 2016). Moreover, access to on-grid electricity is very costly. The electricity
tariff, which once reached $0.52 per kilowatt hour (kWh) in 2012, has since declined to
$0.35 per kWh as of October 2017 (Liberia Executive Mansion 2017). However, this
tariff is still one of the highest in the world due to the utility company’s debts and high
operating costs relative to electricity consumption, the failure of many small and one of
the largest customers to pay electricity bills, exceedingly high commercial and technical
loss rates, and the cost of diesel fuel for the generators that power portions of Liberia’s
electricity infrastructure (African Development Bank Group [AfDB] 2013; Millennium
Challenge Corporation 2015a). The few households and firms that do have the means
and the access to connect to grid electricity experience frequent planned and unplanned
outages (Cooper 2017).
Liberia’s energy sector suffers from an ineffective and inadequate policy and
regulatory environment that lacks strategic and master planning, transparent regulations,
and accountability. Reforms have been slow to materialize due to the low institutional
capacity and inadequate investment in and management of existing infrastructure.
Compounding these issues is the fact that Liberia has one of the highest tariffs in the
world due to high operational costs, the high cost of diesel fuel, low consumption of
electricity, and excessive technical and non-technical losses.

3.2 Energy Sector Expansion and its Impact on Liberian GHG

Emission
Expansion of the access to the electricity in Liberia has a huge advantage
economically or the environment conservation. If the large proportion of the people are

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 Economic Growth Strategy and Carbon Emission level in Liberia

able to use it for cooking as well as other purposes. This would replace the use of
biofuels, and this will reduce the amount of the greenhouse gas emitted into the
atmosphere. Therefore, the expansion of the modern electricity in Liberia has a positive
relationship with the carbon emission. However, the source of electricity for Liberia is
not only the from hydroelectric plant. More than a half percent of the electricity sources
is from diesel and heavy fuel oil (HFO) combined. Since the diesel has a high
contribution rate to the carbon emission electricity from such source can increase the
greenhouse gas effect and hence, cases the climatic change. The following subsections
list the source of electricity in the energy sector.

3.2.1 Diesel Generation

Existing diesel generation base in Liberia composed of the high-speed diesel
generation unit with the installed capacity of 9.7 MW. This is important in covering
some percent of the energy needed for the population.
The use of diesel generation always comes with the environmental concern, and
hence, the contribution to greenhouse gas emission. Among the different supply options,
diesel generators are arguably the most problematic in terms of environmental
consequences, mainly due to the limited possibility of mitigating potential impacts. The
main problems of diesel combustion are noise and air pollution. Diesel generators
release particulate matter and exhaust gases, which are often associated with an increase
in morbidity relating to respiratory diseases among local populations. In addition, diesel
generators produce large amounts of greenhouse gas emissions that contribute to global
warming. The environmental risks associated with diesel generators also include
potential leaking from storage tanks and the consequent contamination of land and
waterways, which may last well after decommissioning unless proper mitigating and
cleaning measures are put in place.
Social impacts of using diesel generation power plant may include potential
resettlement of communities living on or near a plant’s construction site and loss of
access to land. But in Monrovia, site(s) for the setting up of a few further diesel
generators are available. The design of proper environmental and social management
plans helps ensure that these mitigating measures are identified early in project design.

3.2.2 Heavy Fuel Oil (HFO) Generation

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 Chapter 3 Energy Sector Expansion Strategy in Liberia

Heavy fuel oil (HFO) generation is also commonly used for emergency power
situations or as base load power. HFO generation units generally reduce fuel costs by
about 50 percent when compared with diesel fuel. We have benchmarked HFO power
plant costs using data from the literature and from a recently finalized.
When it comes to the effects of using HFO to the carbon emission effect, HFO
power plants share most of the environmental risks associated with those that use fossil
fuels. The most problematic issue is air pollution and the increase in GHG gas in the
atmosphere. Similar to diesel generators, HFO power plants emit greenhouse and by-
product gases and particulate matter, which cause climate change and potentially harm
to the health of local communities. In addition, waste management should be carefully
considered in the design, construction, operation, and decommissioning of such plants.
Environmental risks associated with HFO power also include potential spills during
transportation and storage of the fuel. In general, however, there is a large spectrum of
mitigating measures that may be put in place to significantly reduce the potential
impacts of HFO power plants. Social impacts may include potential resettlement of
communities living on or near a plant’s construction site and loss of access to land. But
in Monrovia, the site for the potential construction of an HFO power plant and
associated facilities is already devoted to industrial use and resettlement is not
envisaged. The design of proper environmental and social management plans helps
ensure that these mitigating measures are identified early in project design.

3.2.3 Hydropower Generation

Hydropower plants are typically built on rivers with a consistent and steady flow
that is either natural or maintained by an upstream reservoir that serves to compensate
for seasonal fluctuations. Liberia’s hydrological resources for power generation vary
greatly between the wet season (July to November) and the dry season (December to
June). Thus, proposals for a hydropower plant for Liberia include a combination of
dams and storage in upstream reservoirs. For the purpose of the least-cost expansion
model, we are considering three potential scenarios for the build-up of hydropower
potential in Liberia. The Mt. Coffee hydropower plant was the only large-scale
hydropower plant constructed before the war, and was conveniently located on the Saint
Paul River approximately 27 km northeast of Monrovia. The plant was commissioned in
1966 with an installed capacity of 30 MW, and its capacity was increased to 64 MW in
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 Economic Growth Strategy and Carbon Emission level in Liberia

1972. This plant was the main source of power supply in Liberia, and was managed by
the LEC. Because of the seasonal.
Several factors influence the potential environmental and carbon emission of
hydropower projects that are highly site specific. Characteristics affecting these impacts
include the size of the dam, the size of the associated power plant, and the presence of a
reservoir. But independent from the characteristics of the specific project, the main gain
in terms of the environment is the total absence of air pollution. Environmental impacts
may include changes in river ecosystems, erosion patterns, river flows, and vegetation
clearings. When a reservoir is needed, hydropower projects may often cause the
inundation of portions of land, which include wildlife habitats, farmland, forests,
cultural heritage monuments, and villages. Hydropower has also some inherently benign
features, which include the lack of air pollution such as by-product gases or particulate
matter. Greenhouse gas emissions are limited to methane and vary with the size and
type of the plant’s reservoir. In general, it is fundamental to manage the potential
impacts early in the project cycle by designing proper environmental and social
management plans and a resettlement action plan.

3.2.4 Renewable Energy Sources Generation

Renewable energy source is the current world trend and most effective source of
energy in reducing the global warming and environmental pollution. Most countries in
the world including rich countries are funding on the development of the renewable
energy generation. As it is known that Liberia is poor and civil war hit country, the
foreign aid and support from the rich countries and international organizations is
suggested in order to implement the energy distribution to its population while reducing
its effect on the climatic change by focusing more on the renewable energy source.
Liberia is endowed with significant renewable energy resources, including
biomass, hydropower, and solar energy. Despite the lack of national data on the solar
resources, global weather data from NREL and other sources show that the monthly
average daily solar radiation on horizontal surfaces in Liberia is between 4.0 kWh/m2
and 6.0 kWh/m2 per day. This is supported by existing donor-funded pilot projects
utilizing solar energy, which have proven a strong solar resource year-round.

3.3 Challenges and Suggested Solutions

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 Chapter 3 Energy Sector Expansion Strategy in Liberia

Being at the infant level of the industrial development, Liberia is facing some of
the problems which could be internal or external. Economic instability is one of the
major situations the country is currently facing. The economic situation of the country is
affecting the implementation the economic growth with low carbon emission plans and
initiations. Another major challenge that is hindering the Liberia‘s plan to acquire the
target is the political situation and conflicts. Even though this does not have direct
relationship, it does affect the development and the policy enforcing power of the
country.
The lack of enough funding and support also affects the policy enforcing level of
the country. As, underdeveloped country in the world, Liberia needs a foreign support in
order to carry out the green economy activities and the policy. Therefore, the lack of the
enough foreign financial and technical support is affecting the progress of the country
regarding the net-zero carbon emission and green economy policy implementation.
The economic activities and current situation of the world is one of the major
problems faced by the country. The climatic change actions cannot be done by a single
country because any carbon emission of the country in one corner can affect the country
in another country. Even though we live different continent, we share the same planet.
Therefore, this green economy and net-zero carbon emission strategy need the shared
contributions of the nations of the world.
Urbanization is also expected to be another challenge for the Liberia’s net zero-
carbon emission. Providing these increasing urban populations with sufficient energy
and transportation services will be a major challenge and this will affect the low carbon
emission target in major sectors in the cities such as transportation and manufacturing.
As addressed above, there are several challenges impeding the full implementation
of agricultural, industrial planning and development in Liberia, including insufficient
data; lack of trained individuals to measure, monitor and evaluate climate impacts on
agriculture and industry; and limited capacity at all levels of implementation. Capacity
building and proper planning are suggested to reduce these challenges. There is also a
need to strengthen the meteorological department in the country to calculate analyze the
carbon emission rate and environmental status for the accurate analysis of the climatic
change improvement progress.

3.4 Summary
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 Economic Growth Strategy and Carbon Emission level in Liberia

This chapter has included the action Liberia is taking in order to facilitate the net-
zero carbon emission plan. The challenges the country is facing is also discussed with
the possible solutions.

10
Chapter 4 Results and Discussions

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 Economic Growth Strategy and Carbon Emission level in Liberia

Chapter 4 Results and Discussions

4.1 Introduction
In this chapter the analysis of the results conducted from the last three chapters will
be discussed.

4.2 Results and Discussions

Since the economy of Liberia is still at the basic stage after collapsed due to the
decade-long civil war which lasted in 2003. Even though the country’s economy is
restoring, it is still affected by several internal and external factors. According to the
research, it is nearly impossible to achieve the faster economic development without
reducing increasing the carbon emission in poor countries. This applies to most of the
African countries including Liberia. Thus, achieving the economic revival and
maintaining the economic development with the balanced climatic affect demand a
heavy task from the government and institution of Liberia.
The result from this study shows that the impact of economic growth (GDP) on
carbon emission is positive in Liberia, but not statistically significant in most cases. The
relationship is positive because of the low level of economic growth in Liberia, and
partly because an increase in GDP or economic growth does not necessarily translate
into higher income nor into a higher standard of living for the people.
According to the 2012 data on the Liberian economic sectors and carbon emission,
land use and forestry cover 90% of the total greenhouse gas emitted to the atmosphere.
This shows that the country has a weak policy for the usage of the natural resources.
For the sustainable development, the country should focus on balancing the
economic development with the climatic change. In this way, the country can have the
stable economic growth the great contribution in lowering the carbon emission.
From this study, it was found the energy sector in Liberia is still at the infant level.
Even though the country is using several energy sources, electricity distribution into the
country is yet to fulfill the increasing demand of the population. Therefore, the
suggested solution for this issue is working more on the renewable resources and rather
than focusing on diesel and HFO generation options. The hydroelectric power plant is

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 Chapter 4 Results and Discussions

one of the best options to increase the electricity level in Liberia. However, this is
mostly affected by the lack of enough rivers in the country and seasonal changes as
well.
To develop stable economic development with less carbon emission effect, I
recommend the country of Liberia to work more towards policy regulation and
development. In addition, independent institutional structure is one of the important
principles to achieve the target.
According to the Environmental Kuznets Curve hypothesis (EKC), as economic
growth increases, the level of environmental degradation increase but when a certain
level of economic growth is reached, the level of degradation of the environment will
decline. So, based on this theory, it is clear that if Liberia has to make the significant
economic growth, the carbon emission level is going to increase even if the country
makes all possible policies or strategies. A good hope for the country its economy is
mostly agricultural and this has lower effect on the carbon emission when compared
manufacturing and production industrial economy.
In order to control and reduce the greenhouse gas from the major economic
activities, Liberia must work on to control the three major economic sectors forestry,
agriculture and mining. In this way, more than 90% of the carbon emitted from the
country can be tracked and controlled.
The suggested carbon emission mitigation plans for reducing the climatic effect of
the economic sectors in Liberia are listed as follows:
- Promoting the exploration of the renewable energy sources, and diversification
of the energy sources.
- Expanding the electricity to the rural area with the additional objective of
reducing the deforestation.
- Identify, promote, and support the use of energy-efficient and low carbon as
well as green energy technologies and practices, including the efficient use of
domestic appliances.
- Promote and implement energy plantation schemes to minimize pressure on
natural forest and reduce energy stress.
- Reduce the generation of the energy sources through diesel and heavy fuel, and
promote hydroelectricity.
- Use more energy efficient and clean technology.
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 Economic Growth Strategy and Carbon Emission level in Liberia

4.3 Summary
In this chapter, the results and the further research direction on the impact of the
technology on the management system has analyzed with the further research tasks.

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 Chapter 5 Conclusions

Chapter 5 Conclusions

To conclude the whole article paper, this topic included the economic development
approach of Liberia with the less effect on the carbon emission level. Thus, it included
all the approaches, policies, strategies, and the plans the country has adjusted in order to
achieve the target. Based on the study of the approaches I have put forward the possible
suggestions and adjustments the country needs to address in order to reduce the effect of
the economic activities having on their climatic and environmental condition.
Insufficient quantity and quality of electricity and poor infrastructure area a
binding constraint to the economic growth in Liberia. To solve this problem, the
government should work on the generation of more electricity power and the installation
of the strong grid system.
.

5.1 Future Research Direction

The future work regarding these kind climates-related research is focusing on the
related subjects. This research is done based on the latest and current climate-related
action being taken by the countries of the world.

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 Economic Growth Strategy and Carbon Emission level in Liberia

Acknowledgments

Being able to complete this article, I am very grateful to God for all the things he
provided me with during this research work. I would like to show my special
appreciation to my supervisor, Professor Guan, for his constant perseverance and
assistance the drafting this article schemes about the Liberia’s approach towards green
economy. I am also thankful to him for pushing me to the full potential that helped me
understand this particular topic more and guiding me throughout the design process.
I would also like to show gratitude to Hubei University of Technology (HBUT) for
their support, material provision, expert advice, and suitable schedule arrangement for
this article completion. This helped me to complete my project with the expected
timeline effectively.
Finally, I would like to appreciate my family members, relatives, classmates, and
friends for all their support and many others who have been very helpful to me.

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 References

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