Climate change, greenhouse gas emission and economic development in Nigeria

Abstract

Climate change is a global environmental problem affecting both advanced and developing nations; it specifically poses economic development challenges for developing countries like Nigeria. This study observed the influence of greenhouse gas emissions on economic development in developing countries, with a particular focus on Nigeria. The climate variables of greenhouse gases used as independent variables were represented by carbon dioxide, methane, and nitrous oxide emissions, respectively; while the concept of economic development was proxied using gross domestic product per capita. The data spanned from 1990 to 2020, and the analytical model was formulated in line with the classical linear regression model. The model was analyzed using a combination of fully modified ordinary least squares, dynamic ordinary least squares, and canonical cointegrating regression. The results showed a mix of both negative and positive outcomes. The findings indicated a negative impact of carbon dioxide on gross domestic product per capita, a positive impact of methane on gross domestic product per capita, and a positive impact of nitrous oxide on gross domestic product per capita. It was recommended that developing nations like Nigeria should invest in renewable energy and adopt sustainable farming techniques to promote growth. The uniqueness of this research lies in the simultaneous investigation of the combination of greenhouse gas emissions, namely, carbon dioxide, methane, and nitrous oxide, within the climate-development framework, departing from most studies that focus on other measures of climate change and developed nations.