Energy Sustainability, Energy Financing and Economic Growth in Nigeria

Abstract

Increase in the global population growth has led to a simultaneous increased in demand for energy leading to increased fear of global warming. This situation has given the international community a cause for concern and as a result, countries are seeking alternative sources for cleaner and sustainable energy. The importance of utilising greener energy sources is evident in the United Nation's Sustainable Development Goals (SDGs), especially Goal 7, Target 2. This study examined the long-run relationship between economic growth, sustainable energy and the different financing options for sustainable energy in Nigeria. The Johansen Cointegration test was utilised in order to achieve this objective. The findings showed that different sources of sustainable energy and the different types of financing employed in Nigeria have different effects on the economic growth of Nigeria. A long-run relationship amongst all three variables was also established. These findings are an indication that with the right policies, SDG 7 could be achieved.

An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development

“…Chirambo (2016) argued that inability of countries in Africa to secure adequate investment constituted a major setback for the continent to access clean energy. Onabote et al (2021) established a long run convergence among various sources of sustainable energy and economic growth in Nigeria. Mitic, Ivanovic and Zdravkovic (2017) utilized Dynamic Ordinary Least Squares (DOLS and Fully Modified OLS (FMOLS) techniques in assessing the linkage between carbon emissions and the growth of 17 emerging economies.…”

“…Building the model for the estimation of the nexu between clean energy supply and industrial development in Nigeria requires some insights to be drawn from the works of Onabote et al (2021), Osabohien et al (2021) and Olaoye et al Some modification was however done on the adapted model to suit the objective of this study. Therefore, the model is as enunciated;…”

“…See Silva, Soares and Pinho (2012), Pao et al (2014), Al-mulali et al (2014), Chirambo, (2018 and Aderemi et al (2021). Meanwhile, a cursory look into past empirical studies in Nigeria shows that various past literature focuses on the connection between clean energy consumption and economic growth (Onabote et al, 2021;Akinwale and Ogundari, 2017;Maji, 2015;Oyedepo, 2014Olugasa et al, 2014. Whereas, the impact of clean energy supplies to manufacturing industries, which constitutes the largest bulk of the country`s real sector has not been fully researched in the most recent time.…”

Energy Absorption, Co2 Emissions and Economic Growth Sustainability in Nigeria

“…The study provided evidence that energy consumption is critical in the evolution of the Nigerian economy. Onabote et al (2020) examined the relationship existing between energy sustainability, financing and economic growth of Nigeria from 1981 to 2014. The study established a long to zrun relationship and also found the energy sustaining and financing variables affecting economic growth differently.…”

“…In Nigeria, Electricity is in high demand and critical to the operations of all economic sectors. The fact is that the energy sources in Nigeria are non-renewable and challenging to sustain (Onabote et al, 2020). The bigger the energy ingestion, the more the carbon (CO 2 ) discharge emanating from absorption of relic energy (oil and gas).…”