Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria

Okoye, Lawrence U.; Omankhanlen, A. E; Okoh, Johnson Ifeanyi; Adeleye, Bosede Ngozi; Ezeji, Felix N.; Ezu, Gideon; Ehikioya, Benjamin Ighodalo

doi:10.32479/ijeep.10768

Cited by 27 publications

(19 citation statements)

References 35 publications

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“…Similar to related studies [36][37][38][39][40], the variables are transformed to their natural logarithms and the study adopts a double log model to forestall the incidence of heteroscedasticity,…”

Section: Econometric Modelmentioning

confidence: 99%

Energy use and the role of per capita income on carbon emissions in African countries

et al. 2021

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This study contributes towards the realization of Sustainable Development Goal (SDG) 13 which aims “take urgent action to combat climate change and its impacts” by investigating the role of per capita income in moderating the impact of energy use on carbon emissions. Using data from 28 selected African countries covering 1990 to 2019 and deploying the FGLS, PCSE, and MM-QR techniques, findings reveal, among others, that: at the 1% significance level, a percentage change in energy use leads to between 0.60% and 0.70% increase in carbon emissions, on average, ceteris paribus. Correspondingly, income shows to be a positive driver of emissions contributing between 0.87% and 0.84% percentage increase, on average, ceteris paribus. Also, per capita income attenuates the impact of energy use on emissions by between -0.27% and -0.23%, on average, ceteris paribus. However, significant heterogeneities occur across the sub-regions. Specifically, Southern Africa shows the largest energy contributor to emissions 1.65% while Central Africa contributes the most to aggravating emissions by 1.87% through increase in per capita income. West Africa shows the largest moderation effect at -0.56%. Across the quartiles, the effects of energy use and per capita are positive. Given these, we submit that the strong correlation between energy usage and per capita income (i.e. economic growth) poses a dilemma for African economies in their drive for growth. Leaving room for trade-offs. Perhaps, the lesson is that as African countries seek for more development without contributing to carbon emissions, governments should invest more in renewable energy.

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Section: Econometric Modelmentioning

confidence: 99%

Energy use and the role of per capita income on carbon emissions in African countries

et al. 2021

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“…This is because climate change and other emission indicators release varieties of poisons that harmfully affect the ecosystem, human well-being 13 , 19 , 20 , 22 , 48 and have resulted in the depletion of soil nutrients as an aftermath of heat intensity 18 . On the usage of nonrenewable energy which are non-replaceable and ironically are vital reactors for economic growth, several energy-agriculture studies 5 , 24 , 26 , 30 , 34 , 35 , 41 elaborate the positive relationship between agricultural production and the energy embodied in agricultural inputs (e.g. in the manufacture and transport of fertilizers and tractors).…”

Section: Introductionmentioning

confidence: 99%

Agro-productivity amidst environmental degradation and energy usage in Nigeria

Adeleye

Daramola

Onabote

et al. 2021

Sci Rep

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This study revisits the 2030 United Nations Sustainable Development Goal (SDG) 2 which aims to “end hunger, achieve food security, improve nutrition and promote sustainable agriculture” by highlighting the impact of environmental degradation (proxied by carbon emissions) and non-renewable energy on agro-productivity in Nigeria. Using annual time series data from 1980 to 2018, the study engages the Johansen cointegration and impulse response functions (IRFs) techniques within the vector autoregressive (VAR) framework. Evidence reveals that carbon emissions significantly reduce agro-productivity by 0.23% while non-renewable energy boosts agro-productivity by 5.38%, on average, ceteris paribus. Other results reveal that domestic credit, rural population and arable land exert asymmetric effects. These outcomes are consistent and align with a priori expectations. Policy recommendations are discussed.

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“…The study adopted the autoregressive distributed lag (ARDL) econometric regression techniques developed by Pesaran et al (2001) to analyze the data because of its inherent advantages over the traditional approaches (Sahoo and Das, 2012;Adeleye et al, 2020a,b;Okoye et al, 2020). One advantage of the ARDL-Bound test approach is that it can be applied in case of fractional mixed order of integration [I(0) and I(1)].…”

Section: Methods Of Data Analysismentioning

confidence: 99%

Impact of Production Sharing Contract Price Sliding Royalty: The Case of Nigeria’s Deepwater Operation

Okoro

Okoye²,

Okafor³

et al. 2021

IJEEP

Self Cite

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Petroleum fiscal regime has been a controversial issue in Nigerian economy. The basic issue is which regime will lead to the greatest benefit to the government without negatively affecting the performance of the international oil companies. Nigeria has in the past used different regime and had adopted the current price sliding royalty regime in 1996. The aim of this study is to examine how the new price sliding royalty affects the stake of government and contractors. This study adopts ex-post research design approach using data from various sources between 1980 and 2019. The autoregressive distributed lag (ARDL) regression approach was adopted for the data analysis. The unit root results reveal that the time series data consists of a mix of I(1) and I(0) variables. The ARDL bound cointegration test shows that all the variables specified in the models have long run relationship. Estimates from the models indicate that the royalty regime in the Deep Offshore and Inland Basin Production Sharing Contract has positive and significant impact on the stake of government in the long and short runs, but negative impact on the stake of contractors. Furthermore, the royalty regime has negative impact on contractors' performance in the long run. However, the impact on the three fiscal indicators (oil revenue, government expenditure, and deficit-GDP ratio) is positive. The study therefore recommends the repeal of the Nigerian petroleum fiscal policy with the new price sliding royalty to encourage investment and development of the petroleum sector.

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Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria

Cited by 27 publications

References 35 publications

Energy use and the role of per capita income on carbon emissions in African countries

Energy use and the role of per capita income on carbon emissions in African countries

Agro-productivity amidst environmental degradation and energy usage in Nigeria

Impact of Production Sharing Contract Price Sliding Royalty: The Case of Nigeria’s Deepwater Operation

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