Pollutant Emissions, Energy Consumption and Economic Growth in Nigeria: A Multivariate Granger Causality Framework
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The study investigates the direction of
causal relationships among emissions, energy
consumption and economic growth in Nigeria using
annual time series data for the period 1970-2013. The
Johansen maximum likelihood cointegration tests
indicate an existence of a unique cointegrating vector,
and the normalized long run estimates shows that
fossil fuel enhances carbon emissions whereas, clean
energy source (electricity) mitigate the atmospheric
concentration of C02 emissions. Similarly, the Wald
exogeneity Granger causality test indicates an
existence of unidirectional causation running from
fossil fuel to C02 emissions and GDP per capita.
Alternatively, non-fossil energy (electric power)
causes more proportionate change in GDP per capita
but our result could not establish any causal link
between electric power and carbon emissions. Finally,
charting a channel towards ensuring sustainable
environment and economic development involves a
progressive substitutability of clean energy sources
for fossil consumption.
Keywords
HB Economic Theory