Analysis of Co2 Emission and Economic Growth as Potential Determinants of Renewable Energy Demand in Nigeria: A Nonlinear Autoregressive Distributed Lags Approach

Abstract

Concerned by the environmental and economic threats posed by fossil fuels as the source of energy, this study uses the case of Nigeria economy to understand the extent to which economic growth and carbon emissions matters for renewable energy demands. Exploring both the linear and nonlinear ARDL modelling framework, the main empirical findings are that the amplified responsiveness of the consequence of climate change has led to increase in the demand for renewable energy particularly when the underlying source of the emissions is attributable to activities in the transport sector. However, in addition to our findings of oil prices as viable for explaining renewable energy demand, this study further pointed out the economic growth as another potential for explaining renewable energy demand but vary for the boom and recession phases of the business cycle.

Assessing the Influence of Renewable Energy Sources on CO2 Emissions: New Insights from Pakistan

“…The economic expansion and the rise in economic activities in Malaysia have both had detrimental effects on the environment. Nguyen (2018), Al Mamun, Sohag, Mia, Uddin, and Ozturk (2014), Asif, Sharma, and Adow (2015) and Dar and Asif (2017) studies that have carried out to investigate the connection between two factors and the impact that they have on the local environment. They noted that economic expansion and environmental degradation are both factors that contribute to environmental degradation.…”