ECONOMIC GROWTH AND ITS ENVIRONMENTAL COST: ENERGY CONSUMPTION AND CARBON EMISSIONS IN NIGERIA

Abstract

This study examines the nexuses amongst Carbon Emission, energy Consumption and economic growth in Nigeria utilizing the ARDL approach to cointegration. Time series data was employed from 1981 – 2023. To achieve the main objective of the study an econometric model expressing the relationship amongst Gross Domestic Product, Carbon Emissions, energy consumption and electricity consumption was used. The unit root test was carried out to establish the stationary of the variables, the output of the result indicated that the time series variables were found to be stationary after the first difference and hence they are series of order (1). The result reveals that the intercept and the coefficient of Carbon emission are negative. This means that one percent change in Carbon emission will lead to a decrease in the percentage of GDP. Energy consumption is significant while electricity consumption is insignificant. This is not surprising given the epileptic power supply in Nigeria. The policy implication deduced from the study is that government should improve on electricity supply to boost economic activities in the country