The Causal Relationship between Natural Gas Productions and Impotent Regulatory Framework on Gas Flaring in Nigeria
Cranbrook Law Review 9(1), 2019
13 Pages Posted: 3 Mar 2020
Date Written: 2018
Abstract
This study investigates the dynamic causal relationship between gas productions and the impotence of the gas flaring regulatory laws and policies in Nigeria. The theoretical models adopted for the study is the law and economics framework of Posner and Akaike’s econometric time-series frameworks. The data for the study consisted of Nigeria’s annual gas export value from 2007 to 2017 which formed the dependent variable and, the impotence of the gas flaring regulatory laws was substituted with the data of the World Bank’s Global Gas Flaring Reduction Partnership (GGFR) and the Nigerian Extractive Industries Transparency Initiative data on the financial values of the losses and damages caused by the laxity in enforcing the laws, representing the independent variable. The models of KPSS and ADF were used in testing the stationarity of the variable. Granger time series causality model was used for data analysis. The results show that, there is a two-way relationship between the variables. The results therefore indicates that, the weaker the regulatory laws, the higher the production and flaring of natural gas. Also the higher the production and flaring of natural gas, the more the regulatory laxity persist.
Keywords: Crude Oil, Gas, Environment, Regulations, Laws, Nigeria.
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