Gas flaring, ineffective utilization of energy resource and associated economic impact in Nigeria: Evidence from ARDL and Bayer-Hanck cointegration techniques

Okoro, Emeka Emmanuel and Adeleye, Bosede Ngozi and Okoye, Lawrence U. and Maxwell, Omeje (2021) Gas flaring, ineffective utilization of energy resource and associated economic impact in Nigeria: Evidence from ARDL and Bayer-Hanck cointegration techniques. Energy Policy, 153.

PDF Download (1MB)

Abstract

This study aligns with Sustainable Development Goal 7 which aims at “ensuring access to affordable, clean energy, reliable, sustainable and modern energy for all”. The Gazetted Flare Gas Regulations 2018 provides a legal framework to support the policy objectives of the Federal Government for the reduction of Green House Gas emissions through the flaring and venting of natural gas. The Regulations provide the legal basis for the implementation of the Nigerian Gas Flare Commercialization Programme. This study investigates the factors contributing to gas flaring activities in Nigeria from 1970 to 2019. Using the autoregressive distributed lag error correction representation and cointegration techniques, findings reveal, among others, that in the long-run: (1) gas flaring activities is persistent; (2) economic growth induces flaring activities; (3) gas prices exert asymmetric impact; (4) gas utilization and fossil fuel are negative predictors. The result shows that gas price contemporaneously exerts positive and statistically significant impact at the 1% level. Gas price contributes 0.187 percent increase to gas flaring while its first lag induces significant reduction in gas flaring by 0.293 percent at 1 percent level of significance. This study also provides sufficient evidence on the persistency of gas flaring activities in Nigeria.

Item Type:	Article
Uncontrolled Keywords:	Gas flaring Gas utilization Economic growth Gas prices Fossil fuel Autoregressive distributed lag Cointegration
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mrs Hannah Akinwumi
Date Deposited:	27 May 2021 12:04
Last Modified:	27 May 2021 12:04
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/14175

Actions (login required)

View Item