Assessing the perceived impact of exploration and production of hydrocarbons on households perspective of environmental

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RESEARCH ARTICLE

Assessing the perceived impact of exploration and production of hydrocarbons on households perspective of environmental regulation in Ghana David Ajene Alemzero 1 & Nadeem Iqbal 2 & Sajid Iqbal 3 & Muhammad Mohsin 1 & Ngonadi Josiah Chukwuma 1 & Burhan Ali Shah 4 Received: 29 December 2019 / Accepted: 15 September 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract This paper seeks to critically study the perceived impacts of the exploration of hydrocarbons in selected coastal communities in the Western region, the oil and gas industry benefits to local communities, and to determine whether hydrocarbon development is a means for sustainable development. The study uses both quantitative and qualitative approaches using a questionnaire survey, key informant interview, and focus group discussion tools to understand the impact of oil and gas exploration and production in selected affected communities along the coast of Ghana. The activities of oil production and exploration impact negatively on communities; it also leads to a sharp increase in food prices thereby increasing their costs of living. The activity has also caused a decline in fish catch levels which happens to be the main economic activity as a result of exclusion zones created by oil companies which limited the extent fishermen can go fishing. In terms of infrastructure, the three communities are lacking, 77% of respondents from Princess Town hold the view that there is no motorable road linking their community in the next town and 60% from Aketakyi also hold the same view. Infrastructure such as roads, schools, water provision, and clinics are woefully provided in these communities. Keywords Hydrocarbons . Environmental regulation . Livelihoods . Sustainable impact . Exploration

Introduction Globally, the dynamics of developing natural resources such as hydrocarbon resources for the economic transformation of resource-endowed countries are always faced with environmental, social, and governance issues. Hydrocarbons are seen as important resources for oiling and promoting modern

industrialization, and it can also serve as an impetus to bring about sustainable economic growth in many developing countries like Ghana. In view of this, non-oil-producing countries have to find ways and means to develop and nurture mutually beneficial relationships with resource-endowed countries to leverage their resources for their economic development (Iqbal and Mohsin 2019; Anser et al. 2020). For instance,

Responsible editor: Philippe Garrigues * Nadeem Iqbal [email protected]

Burhan Ali Shah [email protected]

David Ajene Alemzero [email protected]

1

School of Economics and Finance, Jiangsu University, Zhejiang 212013, People’s Republic of China

Sajid Iqbal [email protected]

2

Department of Business Administration, Ghazi University D. G. Khan, Dera Ghazi Khan, Pakistan

Muhammad Mohsin [email protected]

3

School of Business and Management, Superior University, Lahore, Pakistan

Ngonadi Josiah C