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Pollutant Emissions, Energy Consumption and Economic Growth in Nigeria: A Multivariate Granger Causality Framework

Alege, P. O. and Adediran, Oluwasogo and Ogundipe, Adeyemi A. (2015) Pollutant Emissions, Energy Consumption and Economic Growth in Nigeria: A Multivariate Granger Causality Framework. In: 2nd Covenant University Conference on African Development Issues (CU-ICADI), 11th - 13th May, 2015, Africa Leadership Development Center, Covenant University, Ota, Nigeria..

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Abstract

The study investigates the direction of causal relationships among emissions, energy consumption and economic growth in Nigeria using annual time series data for the period 1970-2013. The Johansen maximum likelihood cointegration tests indicate an existence of a unique cointegrating vector, and the normalized long run estimates shows that fossil fuel enhances carbon emissions whereas, clean energy source (electricity) mitigate the atmospheric concentration of C02 emissions. Similarly, the Wald exogeneity Granger causality test indicates an existence of unidirectional causation running from fossil fuel to C02 emissions and GDP per capita. Alternatively, non-fossil energy (electric power) causes more proportionate change in GDP per capita but our result could not establish any causal link between electric power and carbon emissions. Finally, charting a channel towards ensuring sustainable environment and economic development involves a progressive substitutability of clean energy sources for fossil consumption.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: C02 emissions, Johansen Cointegration, Granger Causality
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 25 Jun 2015 15:06
Last Modified: 25 Jun 2015 15:06
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/5337

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