An Analysis of Relationships Between Renewable Electricity, Household Consumption, and Economic Growth in Nigeria

Abstract

The main purpose of the chapter is to find out the effects of renewable energy on economic growth and household consumption in Nigeria. Renewable energy supply and environmentally sustainable consumption are key ingredients in achieving sustainable economic growth and development all over the world. The chapter aims at highlighting the positive contributions of green energy to sustainable consumption and economic growth. The main methods of analysis for the study are Granger causality tests, VAR impulse response function, and Variance decomposition. The findings show strong links between renewable electricity supply, economic growth, and household consumption in Nigeria. This was expected a priori, as overwhelming empirical and theoretical literature has attested to the effects of renewable electricity on economic growth of other nations around the world.