IMPACT OF ECONOMIC GROWTH AND RENEWABLE ENERGY CONSUMPTION ON CO2 EMISSIONS IN NIGERIA

Main Article Content

Lawal Yusuf
Muhammad Mustapha Abdullahi
Ahmed Malumfashi Halliru

Abstract

This study examined the impact of economic growth and renewable energy consumption on CO2 emissions in Nigeria from 1986 to 2022 using Bootstrap ARDL estimation technique. The empirical findings of the study indicated that there is a long-run relationship among the studied variables. The ARDL regression result revealed that, renewable energy consumption has significant positive impact on economic growth, and significant negative effect on CO2 emission. Similarly, Toda-Yamamoto causality test revealed a bidirectional causality between economic growth and CO2 emission which implies that a high level of economic growth leads to high level of CO2 emissions and vice-versa supporting feedback hypothesis. A unidirectional causality exists among CO2 emission, renewable energy consumption and population growth, whereas absence of causality exists between CO2 emissions and gross fixed capital formation. Furthermore, the findings do not confirm the presence of the EKC hypothesis in Nigeria during the study period. The study recommends that research and development into economic policies that could encourage renewable energy consumption and increase economic growth that lessens CO2 emissions should be strengthened.

Article Details

How to Cite
Yusuf, L., Abdullahi, M. M., & Halliru, A. M. (2024). IMPACT OF ECONOMIC GROWTH AND RENEWABLE ENERGY CONSUMPTION ON CO2 EMISSIONS IN NIGERIA. UMYUK Journal of Economics and Development (UJED), 1(1), 135–146. Retrieved from http://ujed.umyu.edu.ng/index.php/ujed/article/view/14
Section
Articles

References

Acheampong, A. O., Dzator, J., & Savage, D.A. (2021). Renewable energy, CO2 emissions and economic growth in sub-saharan Africa: does institutional quality matter? Journal of policy modeling, 43(5), 1070-1093.

Ajao, E.A. & Anuigwo, S. (2002). Land-based sources of pollution in the Niger Delta, Nigeria. AMBIO: A Journal of the Human Environment, 31(5), 442-446.

Akram, R., Chen, F., Ye, Z. & Majeed T. M. (2019). Heterogeneous effects of energy efficiency and renewable energy on carbon emissions: Evidence from developing countries. Journal of cleaner production 247 (2020) 119122.

Alabdulrazaq, B. & Alrajhi, A. (2016) The validity of environmental Kuznets curve hypothesis in the kingdom of Saudi Arabia: ARDL bounds testing approach to cointegration. international review of management and business research vol. 5 issue 4.

Amri, F. (2018) carbon dioxide emissions, total factor productivity, ICT, trade, financial development, and energy consumption: testing environmental Kuznets curve hypothesis for Tunisia. Environmental science and pollution research.

Bekun, V. E., Alola, A. A. & Sarkodie. A. S. (2018). Towards a sustainable environment: Nexus between CO2 emissions, resource rent, renewable and nonrenewable energy in 16-EU countries. Science of the total environment 657 (2019) 1023-1029.

Egbetokun S., Osabohien E., Akinbobola T., Onanuga O.T., Gershon O.E. & Okafor V. (2020). Environmental Pollution, Economic Growth and Institutional Quality: Exploring the Nexus in Nigeria. Management of Environmental Quality: An International Journal 31(1):18-31.

Evite Kpokpo, S. A. (2014). Impact of Carbon Dioxide (CO2) Emission in Nigeria. Asian Journal of Basic and Applied Sciences, Vol. 1.

Ezenwa, N., Nwatu, V. & Gershon, O. (2021). Renewable energy consumption shocks on CO2 emissions and economic growth of Nigeria. IOP Conference series: earth and environmental science 665(2021).

Gambo S.L., Ishak S.B., Ismail N.W. & Idris M.M. (2018). Energy consumption, Environmental emissions and economic growth: An empirical analysis in Nigeria. IOSR Journal of Humanities and Social Science (IOSR-JHSS) Volume 23, Issue 2, Ver. 2 PP 11-22 e-ISSN: 2279-0837, p-ISSN: 227-0845.

George Umeji, Anthony O.A., Eberechukwu E.E., Ezeh M.C., Okenyeka O.N., & Mbadiwe T.O. (2023), Renewable energy consumption and economic growth in Nigeria. African Journal of social sciences and humanities research 6(1), 34-48.

Hasnisah, A., Azlina, A.A., Imran, M.C. & Taib, C. (2019). The impact of renewable energy consumption on carbon dioxide emissions: empirical evidence from developing countries in Asia. International journal of energy economics and policy ISSN: 2146-4553

Inuwa, N. & Abdullahi, Y., Z. (2016) renewable energy consumption and economic growth nexus: Dynamic panel data evidence from OPEC Member countries. The empirical economics letters, 15(11): ISSN 1681 8997.

Inuwa, N., Rej, S., Onwe, J. C., Hossain, Md. E. (2024). Do clean energy and dependence on natural resources stimulate environmental sustainability? A new approach with load capacity factor and temperature. Natural resources forum, 1-24. https://doi.org/10.1111/1477-8947.12414

Jhingan, M.L. & Sharma, C.K (2011). Environmental economics theory, Management and Policy (2nd Ed.). Vrinda Publications Ltd, India.

Kahia, M., Jebli, B. M., and Belloumi, M., (2019) analysis of the impact of renewable energy consumption and economic growth on carbon dioxide emissions in 12 MENA countries. Clean technologies and environmental policy.

Kuznets, S. (1955). Economic Growth and Income inequality. American Economic Review, 45(1): 1-28.

Lin, F.-L., Lotz-Roula, I. & Chang, T. (2018). Revisit Coal Consumption, C02 emissions and Economic Growth Nexus in China and India: Using a newly Developed Bootstrap ARDL Bound test. Energy Exploration and Exploitation 2018, Vol.36 (3) pp. 450-463.

Mesagan P. E. (2015). Economic Growth and Carbon emission in Nigeria. ResearchGate online

Maji, I.K, (2019). Economic growth, energy consumption, and quality environment in Nigeria. International conference on Advances in Business and Law series, ICABLE, 2019, VOL.3, ISSN: 2523-6547.

Malik M.Y., KashmalaLatif, Khan Z., Butt H., Hussain M., Nadeem M.A. (2020). Symmetric and asymmetric impact of oil price, FDI and economic growth on carbon emission in pakistan: Evidence from ARDL and nonlinear ARDL approach. Science of the total environment. 726: 138421

McNown, R., Sam, C.Y. & S.K. (2018). Bootstrapping the Autoregressive Distributed Lag Test for Cointegration. Department of Economics, The University of Colorado at Boulder, Working Paper 16-08.

Narayan PK, Narayan S. (2010), “Carbon dioxide emissions and economic growth: panel data evidence from developing countries” Energy policy 38:661-666.

Nchege J. & Okpalaoka C. (2021) Air pollution and economic growth nexus in Nigeria: the case for environmental sustainability. 5th International Conference on science and sustainable development (ICSSD 2021) IOP Conf. series: Earth and environmental science 993 (2022).

Nnaji, C.E., Moses, N., Uzoma, E.A.A. & Madueme, S. (2020). Energy Challenge and the Nigerian Economy. Nigerian Journal of Solar Energy (October, 2020), 31 (1):31-34

Nugraha, A.T. & Osman N.H. (2019). CO2 Emissions, Economic Growth, Energy Consumption, and Household Expenditure for Indonesia: Evidence from cointegration and Vector Error Correction Model. International Journal of energy economics and policy, 2019, 9(1), 291-298. ISSN: 2146-4553. www.econjournals.com

OECD (2016), “Emissions of carbon dioxide”, in OECD factbook 2015-2016: Economic, Environmental and social statistics, OECD publishing, Paris.

Ogundipe A.A., Okwara, C. & Ogundipe, O.M. (2020). CO2 Emissions and Environmental Implications in Nigeria. International Journal of Energy Economics and policy, 2020, 10(3), 317-324.

Oshobajo, O.A., Otitoju, A., Otitoju, M.A. & Oke, A. (2020). The impact of Energy Consumption and Economic Growth on Carbon Dioxide Emissions. Sustainability 2020, 12, 7965;

Paramati, Sudharshan Reddy, Di MO, and Rakesh Gupta (2017) page 360-371.

Pesaran, M.H., Shin, Y & Smith, R.J. (2001). Bound testing approach to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326.

Saleem, H., Shahzad, M.& Khan, S.H. (2020). The Short-run and Long-run Dynamic among FDI, Trade Openness and Economic Growth: Using a Bootstrap ARDL Test for Cointegration in Selected Asian Countries. South Asian Journal of Business Studies; DOI 10.1108/SAJBS-07-2019-0124.

Sasana, H. & Putri, A.E. (2018). The Increase of Energy Consumption and Carbon dioxide (CO2) Emission in Indonesia. E3S Web of Conference 31, 01008 (2018).

Shaari, M.S., Abidin N.Z. & Abdulkarim Z. (2020) the impact of renewable energy consumption and economic growth on CO2 emissions: New evidence using panel ARDL study of selected countries. International journal of energy economics and policy, 2020, 10(6), 617-623.

Sulaiman, C. (2014). The Causality between Energy Consumption, CO2 Emissions and Economic Growth in Nigeria: An Application of Toda and Yamamoto Procedure. Advances in Natural and Applied Sciences, 8(8) pp. 75-81.

Tonucci, E. Joseph & Ariolu, C. Charles (2021). Renewable energy consumption, environmental sustainability, and economic growth in developing countries. Asian bulletin of energy economics and technology, 6(1): 43-69.

Vincent, M. O. & Okowa, E. (2022). Fossil fuel consumption, economic growth, and environmental degradation: is the energy consumption-growth nexus sustainable in Nigeria? IOSR Journal of economics and finance (IOSR-JEF), 13(02), pp. 15-68.

Worldbank (2023).World Development Indicators, available http://databank.worldbank.org/data/