An econometric analysis of the macroeconomic determinants of carbon dioxide emissions in Nigeria

Cosmas, Nwedeh Chukwuemeka; Chitedze, Isaac; Mourad, Khaldoon A.

doi:10.1016/j.scitotenv.2019.04.188

Cited by 81 publications

(51 citation statements)

References 21 publications

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“…Finally, no significant link exists between trade openness and CO 2 emissions in Mexico. The outcome corroborates with the previous studies [14,27]. However, it does not comply with prior studies [31], Adebayo et al [13].…”

Section: Long-run and Short-run Estimations Findingssupporting

confidence: 81%

“…The author found evidence supporting the EKC hypothesis, suggesting that financial development, urbanization, and electric consumption positively impact CO 2 emissions, while renewable energy and CO 2 emission have an insignificant linkage. The studies of Rana and Sharma [26], Cosmas et al [27], and Bekun et al [21] also found support for the EKC hypothesis. To examine the EKC hypothesis in European countries, Dogan and Inglesi-Lotz [28] used time-series data from 1980 to 2014.…”

Section: Literature Reviewmentioning

confidence: 79%

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Revisiting the EKC hypothesis in an emerging market: an application of ARDL-based bounds and wavelet coherence approaches

Adebayo

2020

SN Appl. Sci.

132

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This study aims to reexamine long-run and causal effects of trade openness, energy usage, gross capital formation, and real growth on CO 2 emissions in Mexico utilizing recent econometric techniques. The study utilizes yearly data spanning between 1971 and 2016. No prior study has used the wavelet coherence approach to collect information on the correlation and/or causal relation between these economic variables at different frequencies and time frames. Thus, this study proposes to fill the gap in the literature. The motives of the study are to address the questions: (a) Is the EKC hypothesis valid for Mexico? (b) Is there a long-run and causal relationship between CO 2 emissions and its determinants? (c) How are the indicators related at different frequencies and various periods? To capture long-run effects, the study utilized ARDL, FMOLS, and DOLS estimators, while wavelet coherence technique is utilized to explore causal effects among the variables. The empirical findings confirm that (a) EKC hypothesis is valid for Mexico; and (b) gross capital formation, energy usage, and economic growth impact CO 2 emissions positively. The wavelet coherence technique revealed (a) bidirectional causality between economic growth and CO 2 emissions; (b) unidirectional causality from CO 2 emissions to energy usage; and (c) one-way causality running from CO 2 emissions to gross capital formation. Based on these findings, recommendations were suggested.

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Section: Long-run and Short-run Estimations Findingssupporting

confidence: 81%

Section: Literature Reviewmentioning

confidence: 79%

Revisiting the EKC hypothesis in an emerging market: an application of ARDL-based bounds and wavelet coherence approaches

Adebayo

2020

SN Appl. Sci.

132

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“…Their findings rejected the existence of an inverted U-shaped curve between economic growth and transport pollution. Cosmas et al [34] refuted the existence of an EKC in Nigeria by examining both linear and non-linear effects of economic growth on environment using ARDL and nonlinear autoregressive distributive lag (NARDL) models. They showed that an N-shaped curve holds in Nigeria.…”

Section: Single-country Studiesmentioning

confidence: 99%

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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Our pioneer study is aimed at investigating the role of the service sector in affecting sustainable environment in Pakistan. Using time series data over 1971–2014 and applying an autoregressive distributive lag (ARDL) model with structural break analysis, we establish a long-term equilibrium relationship of carbon dioxide (CO2) emissions with energy consumption, income level, services and trade openness. Our findings support a service-induced environmental Kuznets curve (EKC) hypothesis in Pakistan. The income level sharply raises environmental degradation at the early stage; however, after reaching a certain threshold, it improves environmental quality but at a lower rate. There exists an inverted U-shaped nexus between services and CO2 emissions, which implies that the service sector is less energy-intensive in terms of mitigating pollution in Pakistan. Moreover, the energy consumption has an inverted U-shaped effect on carbon emissions, which implies energy efficiencies and adoption of renewable energy has reduced pollution in the long run. The trade openness increases CO2 emissions in both the short term and long term. The quadratic term of income level has a negatively inelastic impact on CO2 emissions, which implies a very slow rate of improvement in environmental quality. On the other hand, the quadratic term of services shows a highly elastic impact on pollution, which induces the EKC hypothesis. Our robustness checks such as fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (OLS), and Toda and Yamamoto (TY) causality tests further confirm the existence of the service-induced EKC hypothesis in Pakistan. Moreover, there exists a unidirectional causality from energy consumption to CO2 emissions, a bidirectional causal relationship between economic growth and CO2 emissions, and a unidirectional causal linkage between services and CO2 emissions. Lastly, we discuss certain policy implications for designing appropriate environmental and energy policies to mitigate the pollution in Pakistan.

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“…Using the ARDL bounds technique, Rafindadi (2016) shows that financial development stimulates energy demand and lowers CO 2 emissions in Nigeria over the period 1971-2011. Interestingly, Cosmas et al (2019) identified insignificant relationship between CO 2 emissions and financial development in Nigeria over the period from 1981 to 2016. These studies could therefore be extended by considering possible asymmetries in the relationship between CO 2 emissions and financial development in Nigeria.…”

Section: Literature Reviewmentioning

confidence: 97%

“…In the literature, studies on the impact of financial development on CO 2 emissions in Nigeria are still very scanty. Thus far, the few available studies have reported mixed results due to either differences in estimation techniques, sample period covered or indicators of financial sector development used (see Cosmas et al, 2019;Rafindadi, 2016). In addition, these studies have assumed a linear relationship in the analysis, exploring only how financial development symmetrically impacts on CO 2 emissions in Nigeria.…”

Section: Introductionmentioning

confidence: 99%

Symmetric and asymmetric effects of financial development on carbon dioxide emissions in Nigeria: Evidence from linear and nonlinear autoregressive distributed lag analyses

Omoke¹,

Opuala–Charles

Nwani³

2020

Energy Exploration & Exploitation

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This study examines the impact of financial development on carbon dioxide emissions in Nigeria over the period 1971–2014. Income per capita, energy consumption, exchange rate and urbanization are incorporated in the analysis. The empirical analysis based on linear and nonlinear autoregressive distributed lag techniques provides evidence of long-run relationship among the variables in Nigeria. The results in general show that financial development has significant asymmetric effects on carbon dioxide emissions in Nigeria. Both short-run and long-run analyses show that the impact of positive changes in financial development on carbon dioxide emissions is significantly different from that of negative changes. The results suggest that in Nigeria positive shocks in financial development have significant reducing effect on carbon dioxide emissions, while negative shocks in financial development have significant increasing effect on carbon dioxide emissions. The empirical results also show that the response of carbon dioxide emissions to negative shocks in financial development is stronger. Based on these findings, this study concludes that mitigation policies would need to incorporate strategies to strengthen the depth of financial intermediation in the Nigerian economy.

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An econometric analysis of the macroeconomic determinants of carbon dioxide emissions in Nigeria

Cited by 81 publications

References 21 publications

Revisiting the EKC hypothesis in an emerging market: an application of ARDL-based bounds and wavelet coherence approaches

Revisiting the EKC hypothesis in an emerging market: an application of ARDL-based bounds and wavelet coherence approaches

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Symmetric and asymmetric effects of financial development on carbon dioxide emissions in Nigeria: Evidence from linear and nonlinear autoregressive distributed lag analyses

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