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