Impact of Electricity Consumption, Financial Development, Trade Openness on CO2 Emissions: Evidence from Nigeria
Economic Studies Journal (Ikonomicheski Izsledvania) 4 143-157, 2019
Posted: 8 Jan 2020
Date Written: December 18, 2019
This paper has explored the role of electricity consumption financial development and trade openness on the CO2 emissions. The study utilizes annual data from 1972 to 2014 and employs various robust econometric techniques. Our analysis reveals that there is no long-term relationship financial development, trade openness and CO2 emission. However, the short-run analysis indicates significant relationship among the variables. The results also reveal that the bidirectional relationship between electricity consumption and CO2 emissions, and a unidirectional causality from financial development to CO2 emissions. Our results imply that policies that will promote renewable energy consumption and financial development can be pursued concurrently.
Keywords: Electricity Consumption, Financial Development, Trade Openness
JEL Classification: C32, G0, O44, Q43
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