Impact of Non-Renewable Energy Consumption and Economic Growth on Carbon Emission in Nigeria

Main Article Content

Adama T. Dansofo
Zakaree S. Saheed
Anfofum A. Alexander
Mustapha Muktar
Suleiman Sahad
Yakubu Alfa
Moses Dampome
Jude O. Ibubor
Gambo J. Samuel
Sanya Ojo

Abstract

The study examines the impact of non-renewable energy consumption and economic growth on carbon emission using an annual data spanning from 1980 to 2022. The Autoregressive Distributed Lag Model was employed. From the analysis, the co-integration results reveal that there is a long-run relationship between the variables under study. Furthermore, both the long-run and short-run Autoregressive Distributed Lag (ARDL) estimates unequivocally demonstrate that both economic growth and the non-renewable energy consumption exert statistically significant, and positive impacts on CO2 emissions. In essence, they jointly contribute to the observed increase in CO2 emissions over the study period. Based on the findings, it is recommended that adequate regulations, restrictions and innovative ways in fostering economic growth through energy consumption from non-renewable energy sources are implemented alongside policies from energy regulatory Commission and environmental protection agencies, to explore avenues to invest in, and promote, carbon-reducing technology in production processes to mitigate against the effects and degradation of the environment.

Article Details

How to Cite
Dansofo, Adama T., Zakaree S. Saheed, Anfofum A. Alexander, Mustapha Muktar, Suleiman Sahad, Yakubu Alfa, Moses Dampome, Jude O. Ibubor, Gambo J. Samuel, and Sanya Ojo. 2024. “Impact of Non-Renewable Energy Consumption and Economic Growth on Carbon Emission in Nigeria”. ABUAD Journal of Social and Management Sciences 5 (1), 94-119. https://doi.org/10.53982/ajsms.2024.0501.05-j.
Section
Articles

References

Ali, S. S. S., Razman, M R., & Awang, A (2020). The Nexus of population, GDP growth, electricity generation, electricity consumption and carbon emissions output in Malaysia. International Journal of Energy Economics and Policy, 10(3), 84.
https://doi.org/10.32479/ijeep.8987

Alege, P. O., Adediran, O., & Ogundipe, A. A. (2016). Pollutant emissions, energy consumption and economic growth in Nigeria. International journal of energy economics and policy, 6(2), 202-207.

Acheampong, A. O. (2018). Economic growth, CO2 emissions and energy consumption: what causes what and where? Energy Economics, 74, 677-692.
https://doi.org/10.1016/j.eneco.2018.07.022

Abbasi, K. R., Shahbaz, M., Jiao, Z., & Tufail, M (2021). How energy consumption, industrial growth, urbanization, and CO2 emissions affect economic growth in Pakistan? A novel dynamic ARDL simulations Approach. Energy, 221, 119793.
https://doi.org/10.1016/j.energy.2021.119793

Anjum, Z., Burke, P. J., Gerlagh, R., & Stern, D. I. (2014). Modeling the emissions-income relationship using long-run growth rates. CCEP Working Papers 1403

Antweiler, W., Copeland, B. R., & Taylor, M. S. (2001). Is free trade good for the environment? American Economic Review, 91, 877-908.
https://doi.org/10.1257/aer.91.4.877

Akpan, G. E., & Akpan, U. F. (2012). Electricity consumption, carbon emissions and economic growth in Nigeria. International Journal of Energy Economics and Policy 2(4), 292.

Awodumi, O. B., & Adewuyi, A. O. (2020). The role of non-renewable energy consumption in economic growth and carbon emission: Evidence from oil producing economies in Africa. Energy Strategy Reviews, 27, 100434.
https://doi.org/10.1016/j.esr.2019.100434

Anderson, D. and W. Cavendish (2001), 'Dynamic Simulation and Environmental Kuznets Curve', Journal of Public Economics 80(2), 269-286.
https://doi.org/10.1016/S0047-2727(00)00110-9

Adedoyin, F.F., Nwulu, N., & Bekun, F. V. (2021). Environmental degradation, energy consumption and sustainable development: accounting for the role of economic complexities with evidence from World Bank Income Clusters. Business Strategy and the Environment.
https://doi.org/10.1002/bse.2774

Azam, A., Rafiq, M., Shafique, M., Zhang, H., Ateeq, M., & Yuan J. (2021). Analyzing the relationship between economic growth and electricity consumption from renewable and non-renewable sources: Fresh evidence from newly industrialized countries. Sustainalbe Energy Technologies and Assessments, 44, 100991.
https://doi.org/10.1016/j.seta.2021.100991

Adebayo, T.S., Awosusi, A, A., Odugbesan, J.A., Akinsola, G.D., Wong, W.K., & Rjoub, H. (2021). Sustainability of Energy-induced growth nexus in Brazil: do carbon emissions and urbanization matter?. Sustainability, 13(8), 4371.
https://doi.org/10.3390/su13084371

Ali, H.S., Nathaniel, S.P., Uzuner, G., Bekun, F.V., & Sarkodie, S.A. (2020). Trivariate modelling of the nexus between electricity consumption, urbanization and economic growth in Nigeria: fresh insights from Maki Cointegration and casuality tests. Heliyon, 6(2), e03400.
https://doi.org/10.1016/j.heliyon.2020.e03400

Asongu, S.A., Agboola, M.O., Alola, A.A., & Bekun F.V. (2020). The criticality of growth, urbanization, electricity and fossil fuel consumption to environment sustainability in Africa. Science of the Total Environment, 712, 136376.
https://doi.org/10.1016/j.scitotenv.2019.136376

Adams, S., Adedoyin, F., Olaniran, E., & Bekun, F. V. (2020). Energy consumption, economic policy uncertainty and carbon emissions: causality evidence from resource rich economies. Economic Analysis and Policy, 68, 179-190.
https://doi.org/10.1016/j.eap.2020.09.012

Adedoyin, F. F., & Zakari, A. (2020). Energy consumption, economic expansion, and CO2 emission in the UK: the role of economic policy uncertainty. Science of the total Environment, 738, 140014.
https://doi.org/10.1016/j.scitotenv.2020.140014

Abdollahi, H. (2020). Investigating energy use, environment pollution, and economic growth in developing countries.
https://doi.org/10.2478/rtuect-2020-0016

Anser, M. K., Usman M., Godil, D. I., Shabbir, M. S., Sharif, A., Tabash, M. I., & Lopez, L. B. (2021). Does globalization affect the green economy and environment? The relationship between energy consumption, carbon dioxide emissions, and economic growth. Environmental Science and Pollution Research, 1 - 14.
https://doi.org/10.1007/s11356-021-15192-8

Anser, M. K., Usman M., Godil, D. I., Shabbir, M. S., Sharif, A., Tabash, M. I., & Lopez, L. B. (2021). Does globalization affect the green economy and environment? The relationship between energy consumption, carbon dioxide emissions, and economic growth. Environmental Science and Pollution Research, 1 - 14.
https://doi.org/10.1007/s11356-021-15192-8

Baz, K., Xu, D., Ali, H., Ali, I., Khan, I., Khan, M. M., & Cheng, J. (2020). Asymmetric impact of energy consumption and economic growth on ecological footprint: using asymmetric and nonlinear approach: Science of the total environment, 718, 137364.
https://doi.org/10.1016/j.scitotenv.2020.137364

Balcilar, M., Ozdemir, Z. A., Tuncsiper, B., Ozdemir, H., & Shahbaz, M. (2020). On the nexus among carbon dioxide emissions, energy consumption and economic growth in G - 7 Countries: new insights from the historical decomposition approach. Environment, Development and Sustainability, 22(8), 8097 - 8134.
https://doi.org/10.1007/s10668-019-00563-6

Bashir, A., Susetyo, D., Suhel, S., & Azwardi, A. (2021). Relationships between Urbanization, Economic Growth, Energy Consumption, and CO 2 Emissions: Empirical Evidence from Indonesia. The journal of Asian Finance, Economics and Business, 8(3), 79 - 90.

Balsalobre - Lorente, D., Shahbaz, M., Roubaud, D., & Farhani, S. (2018). How economic Growth, renewable electricity and natural resources contribute to CO2 emissions? Energy Policy, 113 356 - 367 .
https://doi.org/10.1016/j.enpol.2017.10.050

Chontanawat, J. (2020). Relationship between energy consumption, CO2 emission and economic growth in ASEAN: Cointegration and causality model. Energy Reports, 6, 660-665.
https://doi.org/10.1016/j.egyr.2019.09.046

Cowan, W.N., Chang, T., Inglesi-Lotz, R., & Gupta, R. (2014). The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries. Energy Policy, 66, 359-368.
https://doi.org/10.1016/j.enpol.2013.10.081

Ezenwa, N., V., & Gershon, O. (2021, March). Renewable Consumption Shocks on CO2 Emissions and Economic Growth of Nigeria. In IOP Conference Series: Earth and Environmental Science (Vol. 665, No. I, p. 012013). IOP Publishing.
https://doi.org/10.1088/1755-1315/665/1/012013

Gao, J., & Zhang, L. (2012). Does biomass energy consumption mitigate CO2 emissions? The role of economic growth and urbanization: evidence from developing Asia. Journal of the Asia Pacific Economy, 26(1), 96 - 115.
https://doi.org/10.1080/13547860.2020.1717902

Jiang, Q., Khattak, S. I., & Rahman, Z. U. (2021). Measuring the simultaneous effects of electricity consumption and production on carbon dioxide emissions (CO2e) in China: New evidence from an EKC - based assessment. Energy, 229 120616.
https://doi.org/10.1016/j.energy.2021.120616

Joo, Y. J., Kim, C. S., & Yoo, S. H. (2015). Energy consumption, CO2 emission, and economic growth: evidence from Chile. International Journal of Green Energy, 12(5), 543 - 550.
https://doi.org/10.1080/15435075.2013.834822

Jan, A., Xin - Gang, Z., Ahmad, M., Irfan, & Ali, S. (2012). Do economic openness and electricity consumption matter for environmental deterioration: silver bullet or a stake?. Environmental Science and Pollution Research, 1 - 16.

Ibrahim, A. S., & Cudjoe, D. (2021). The environmental impact of energy consumption in Nigeria. Evidence from CO2 Emissions.
https://doi.org/10.21203/rs.3.rs-420727/v1

Khan, M. K., Khan, M. I., & Rehan, M. (2020). The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan. Financial innovation, 61), 1 - 13.
https://doi.org/10.1186/s40854-019-0162-0

Khan, M. B., Saleem, H., Shabbir, M. S., & Huobao, X. (2021). The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries. Energy & Environmental. 0958305X20986896.
https://doi.org/10.1177/0958305X20986896

Kongkuah, M., Yao, H., Fongjong, B. B., & Agyemang, A. O. (2021). The Role of CO 2 emissions and economic growth in energy consumption: empirical evidence from Belt and Road and OECD countries. Environmental Science and Pollution Research, 28(18), 22488 - 22509.
https://doi.org/10.1007/s11356-020-11982-8

Lin, B., & Li, Z. (2020). Is more use of electricity leading to less carbon emission growth? An analysis with a panel threshold model. Energy Policy, 137, 111121.
https://doi.org/10.1016/j.enpol.2019.111121

Li, K., Hu, E., Xu, C., Musah, M., Kong, Y., Mensah, I. A., … & Su, Y. (2021). A heterogeneous analysis of the nexus between energy consumption, economic growth and carbon emissions: Evidence from the group of twenty (G20) countries. Energy Exploration & Exploitation, 39(3), 815 - 837.
https://doi.org/10.1177/0144598720980198

Longe, A. E., Adekoya, T. M., Soyemi, C. O., Agbanuji, D. A., & Adekomi, I. J. The Asymmetric Impact of Oil Price and Electricity Consumption on Economic Growth: Evidence from Nigeria.

Magazzino, C., Porrini, D., Fusso, G., & Schneider, N. (2021). Investigating the link among ICT, electricity consumption, air pollution, and economic growth in EU countries, energy sources, part B: Economics, Planning and Policy, 1 - 23.

Nibedita, B., & Irfan, M. (2021). The role of energy efficiency and energy diversity in reducing carbon emissions: empirical evidence on the long-run trade-off or synergy in emerging economies. Environmental Science and Pollution Research, 1 - 17.
https://doi.org/10.1007/s11356-021-14642-7

Odugbesan, J. A., & Rjoub, H. (2020). Relationship among economic growth, energy consumption, CO2 emission, and urbanization: evidence from MINT countries. Sage open, 10(2), 2158244020914648.
https://doi.org/10.1177/2158244020914648

Olarinde, M., Martins, I., Abdulsalam, S. (2014), An empirical analysis of the relationship between CO2 emissions and Economic growth in West Africa. America Journal of Economics, 4(1), 1 - 17.

Polat, B. (2012). The impact of renewable and non-renewable energy consumption on economic growth: a dynamic panel data approach. Asia - pacific Journal of Accounting & Economics, 28(5), 592 - 603.
https://doi.org/10.1080/16081625.2018.1540936

Panayotou, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development. Working paper, technology and employment programme, international Labour Office, Geneva, WP238.

Panayotou, T. (1997). Demystifying the environmental Kuznets curve: turning a black box into a policy tool. Environment and Development Economics, 2, 465 - 484.
https://doi.org/10.1017/S1355770X97000259

Shahbaz, M., Sbia, R., Hamdi, H., & Ozkurk, I. (2014). Economic growth, electricity consumption, urbanization and environmental degradation relationship in United Arab Emitrates. Ecological Indicators, 45 622- 631.
https://doi.org/10.1016/j.ecolind.2014.05.022

Shaari, M. S. (2017). The effects of electricity consumption and economic growth on Carbon Dioxide emission.

Salahuddin, M., Alam. K., Ozturk, I., & Sohag, K. (2018). The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. Renewable and Sustainable Energy Reviews, 81, 2002 - 2010.
https://doi.org/10.1016/j.rser.2017.06.009

Salari, M., Javid, R. J., & Noghanibehambari, H. (2012). The nexus between CO2 emissions, Energy consumption, and economic growth in the US. Economic Analysis and Policy, 69, 182 - 194.
https://doi.org/10.1016/j.eap.2020.12.007

Saint Akadiri, S., Alola, A. A., Olasehinde - Williams, G., & Etokakpan, M. U. (2020). The role of electricity consumption, globalization and economic growth in carbon dioxide emissions and its implications for environmental sustainability targets. Science of the Total Environment, 708, 134653.
https://doi.org/10.1016/j.scitotenv.2019.134653

Saint Akadiri, S., Alola A. A., Bekun, F. V., & Etokakpan, M. U. (2020). Does electricity consumption and globalization increase pollutant emissions? Implications for environmental sustainability target for China. Environmental Science and Pollution Research, 27(20), 25450-25460.
https://doi.org/10.1007/s11356-020-08784-3

Saidi, K., & Rahman, M. M. (2021). The link between environmental quality, economic growth, and energy use: new evidence from five OPEC countries. Environment systems and decisions, 41(1), 3 - 20.
https://doi.org/10.1007/s10669-020-09762-3

Schneider, N. (2021). Pollution growth, electricity demand and environmental sustainability in Nigeria: insights from a vector auto - regressive approach. International journal of Environmental Studies, 1 - 28..
https://doi.org/10.1080/00207233.2021.1905317

Tong, T., Ortiz, J., Xu, C., & Li, F. (2020). Economic growth, energy consumption, and carbon dioxide emissions in the E7 countries: a bootstrap ARDL bound test. Energy, Sustainability and Society, 10(1), 1 - 17.
https://doi.org/10.1186/s13705-020-00253-6

Rahman, M. M. (2020). Environmental degradation: The role of electricity consumption, economic growth and globalization. Journal of Environmental Management, 253, 109742.
https://doi.org/10.1016/j.jenvman.2019.109742

Rahman, H. U., Zaman, U., & Gorecki, J. (2021). The role of Energy Consumption, Economic Growth and Globalization in Environmental Degradation: Empirical Evidence from the BRICS Region. Sustainability, 13(4), 1924.
https://doi.org/10.3390/su13041924

Wasti, S. K. A., & Zaidi, S. W. (2020). An empirical investigation between CO2 emission, energy consumption, trade liberalization and economic growth: A case of Kuwait. Journal of Building Engineering, 28, 101104.
https://doi.org/10.1016/j.jobe.2019.101104

Usman, O., lortile, I. B., & Ike, G. N. (2020). Enhancing sustainable electricity consumption in a large ecological reserve-based country: the role of democracy, ecological footprint, economic growth, and globalization in Brazil. Environmental Science and Pollution Research, 27(12), 13370-13383.
https://doi.org/10.1007/s11356-020-07815-3

Ummalla, M., & Goyari, P. (2021). The impact of clean energy consumption on economic growth and CO2 emissions in BRICS countries: Does the environmental Kuznets curve exist?. Journal of Public Affairs, 21(1), e2126.
https://doi.org/10.1002/pa.2126

Waheed, R., Sarwar, S., & Wei, C. (2019). The survey of economic growth, energy consumption and carbon emission. Energy Reports, 5, 1103-1115.
https://doi.org/10.1016/j.egyr.2019.07.006

Yusuf, A.M., Abubakar, A. B., & Mamman, S. O. (2020). Relationship between greenhouse gas emission, energy consumption, and economic growth: evidence from some selected oil-producing African countries: Environmental science and pollution research international, 27(13), 15815.
https://doi.org/10.1007/s11356-020-08065-z

Yao, S., Zhang, S., & Zhang, X. (2019). Renewable energy, carbon emission and economic growth: A revised environmental Kuznets Curve perspective. Journal of cleaner production, 235, 1338-1352.
https://doi.org/10.1016/j.jclepro.2019.07.069

Zhang, P., Cai, W., Yao, M., Wang, Z., L., & Wei, W. (2020). Urban Carbon emissions associated with electricity consumption in Beijing and the driving factors. Applied Energy, 275, 115425.
https://doi.org/10.1016/j.apenergy.2020.115425

Zhang, J., Dai, Y., Su, C. W., Kirikkaleli, D., & Umar, M. (2021). Intertemporal change in the effect of economic growth on carbon emission in China. Energy & Environment, 0958305X211008618.
https://doi.org/10.1177/0958305X211008618

Zhao, M., Lu, L., Zhang, B., & Luo, H. (2021). Dynamic Relationship Among Energy Consumption, Economic Growth and Carbon Emissions in China. Research of Environmental Sciences, 1509-1522.