Nexus between Carbon Dioxide Emission, Energy Consumption and Economic Growth in Nigeria

Abstract

This study investigated the nexus between carbon dioxide emission, energy consumption and economic growth in Nigeria covering the year 1980-2016. The study use secondary source of data that were sourced from various energy parastatal database, these data were analyzed using the Granger block exogienty (wald test) and the Vector Autoregressive (VAR) with more emphasis on the impulse response and variance decomposition. GDP was found to be associated with increase in carbon emission in the Nigerian case, while primary energy consumption and emissions are positively related. This positive relationship, conforms to theoretical expectation, because of the large surplus in the supply and less than proportionate surplus demand of primary energy consumption in Nigeria. It was also found that the shock to all our variables are not necessarily available always i.e long run. Following the findings of the study; it recommended that investment in energy sector which facilitate diversification reduce carbon dioxide emission and meet up with raising energy demand should be in place. Also recommends that the need to use more energy conservation methods to increase the efficient use of energy and thus promote economic growth and improve environmental quality in Nigeria.