Economic Growth and Carbon Emission in Nigeria
The IUP Journal of Applied Economics, Vol. XIV, No. 4, October 2015, pp. 61-75
15 Pages Posted: 19 Dec 2015 Last revised: 19 Aug 2016
Date Written: December 18, 2015
This study focuses on the relationship between carbon emission and economic growth in Nigeria from 1970 to 2013 by employing carbon emission, real gross domestic product, capital investment, and trade openness in the analysis. Error correction model is used and the results clearly show that in the first period, economic growth positively impacts carbon emission, while it negatively impacts carbon emission in the lagged period. It is also revealed that trade openness and capital investment positively impact carbon emission in Nigeria. Thus, it is recommended that since a reduction in GDP (in an attempt to curb carbon emission) can harm the country’s economic progress, it is expedient to look for ways to promote green growth in the country. Policy makers must put in place measures that guide against the dumping of environmentally unfriendly products into the country, and in order to ensure that the capital investment does not contribute to carbon emission in the country, Nigeria can use its infrastructure deficit to leapfrog to greener investments by using environmentally sound technologies and innovations that are currently available.
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