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Fuel Subsidy Reform and Environmental Quality in Nigeria

Akinyemi, Opeyemi and Alege, P. O. and Ajayi, Oluseyi and Amaghionyeodiwe, Lloyd and Ogundipe, Adeyemi A. (2015) Fuel Subsidy Reform and Environmental Quality in Nigeria. Fuel Subsidy Reform and Environmental Quality in Nigeria. (In Press)

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The study examines the existence of a long run effect of fuel subsidy reform on environmental quality in Nigeria for the period of 1970-2012 using the Johansen and the Engle-Granger two step co-integration procedure techniques. The study developed a three case scenarios including i) a case of subsidy payment, ii) a case of effective subsidy and, iii) a case of no subsidy payment. Findings from the study supported evidence of a long run sustainable equilibrium model. Also, our estimation results showed that the first and the last case scenario do not significantly influence environmental quality. This implies that subsidy payment in Nigeria does not enhance access and consumption of liquid fuel. On the other hand, the interaction of sound regulatory framework with subsidy payment (the case of effective subsidy) significantly exerts a responsive influence on environmental quality.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mr Stephen Oluwatobi
Date Deposited: 17 Mar 2015 21:21
Last Modified: 11 Jan 2016 08:38

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