Climate Change and Economy in Nigeria: A Quantitative Approach

Abstract

This study has examined the potential impacts of climate change on Nigerian economic growth using a time series data (1980-2017). In doing so, an econometric model has been constructed based on theoretical and empirical literatures of the climate change economics, then it has employed a growth model adapted from the Solow growth model. The research work found that annual average rainfall has a significant effect on economic growth both short-run and long-run. Also, there is a high degree of positive and significant relationship between carbon emission, foreign direct investment, gross fixed capital formation and economic growth under investigation. The result also revealed that this relationship between climatic factors and economic growth is more noticeable in the long run. In addition, an inverse relationship was found between forest depletion, population growth and economic growth in the long run. Finally, there is unidirectional causality between annual average rainfall and economic growth in Nigeria. It is therefore recommended that the stakeholders and the general public should build green economy that enables sinking carbon and promotes carbon market in the long-run.

Climate Change and Population Growth Rate: any Implications for Economic Growth in Nigeria?

“…These results are consistent with the research conducted by Jonathan and Emmanuel (2017) and Kareem et al (2022), who also concluded that carbon emissions significantly adversely impact short-term EG. However, these results contradict the findings of Adejumo (2021), who identified a significant positive relationship between carbon emissions and economic growth.…”

“…Conversely, a negative relationship was observed between net migration and EG. Regarding Granger causality, the results indicate no causality between climate change and economic growth, which contrasts with the findings of Kareem et al (2022) and contradicts the results of Adejumo (2021), who found a unidirectional causality between annual average rainfall and economic growth in Nigeria.…”

“…License (http://creativecommons.org/licenses/by-nc-nd/4.0/) There is mounting evidence indicating that CC-related factors, including rising temperatures, altered rainfall patterns, sea-level rise, disruptions to freshwater resources, extreme weather events, widespread flooding, droughts in the northern regions, and heightened health risks, contribute to the country's vulnerability. These climate-induced issues are taking a toll on Nigeria's economy, exacerbating environmental concerns and negatively affecting the overall economic well-being of its citizens [Adejumo, 2021]. Climate change is a prolonged and persistent alteration in statistical climate patterns, typically lasting a decade or more.…”

“…For ample, Ogbuabor and Egwuchukwu's (2017) studied the impact of CC on the Nigerian economy using data from 1981 to 2014. Similarly, studies on the impact of population growth on economic growth in Nigeria, such as Eli et al (2015) and Adejumo (2021), relied on data from the 1980s to early 2010s. Given these considerations, the research addresses the following questions: Is there any effect of climate change on economic growth?…”