Electricity Supply, Fossil fuel Consumption, Co2 Emissions and Economic Growth: Implications and Policy Options for Sustainable Development in Nigeria.

Authors

  • Chibueze Eze Nnaji National Centre for Energy Research and Development,University of Nigeria,Nsukka
  • Jude O. Chukwu University of Nigeria
  • Moses Nnaji National Centre for Energy Research and Development,University of Nigeria,Nsukka.

Abstract

This paper investigates the causal relationship among electricity supply, fossil fuel consumption, CO2 emissions and economic growth in Nigeria for the period 1971-2009, in a multivariate framework.Using the bound test approach to cointegration, we found a short-run as well as a long-run relationship among the variables with a positive and statistically significant relationship between CO2 emissions and fossil fuel consumption. The findings also indicate that economic growth is associated with increased CO2 emissions while a positive relationship exists between electricity supply and CO2 emissions revealing the poor nature of electricity supply in Nigeria. Further, the Granger causality test results indicate that electricity supply has not impacted significantly on economic growth in Nigeria. The results also strongly imply that policies aimed at reducing carbon emissions in Nigeria will not impede economic growth. The paper therefore concludes that a holistic energy planning and investment in energy infrastructure is needed to drive economic growth. In the long-run however, it is possible to meet the energy needs of the country, ensure sustainable development and at the same time reduce CO2 emissions by developing alternatives to fossil fuel consumption, the main source of CO2 emissions. Keywords: CO2 emissions; Economic growth; Electricity supply; Granger causality; Bounds testing; Fossil fuel consumption. JEL Classification: Q41; Q42; Q43  

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Author Biographies

Chibueze Eze Nnaji, National Centre for Energy Research and Development,University of Nigeria,Nsukka

Research Fellow II, Energy Management and Environment, Unit

Jude O. Chukwu, University of Nigeria

Lecturer ll, department of Economics

Moses Nnaji, National Centre for Energy Research and Development,University of Nigeria,Nsukka.

Research Fellow ll

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Published

2013-06-18

How to Cite

Nnaji, C. E., Chukwu, J. O., & Nnaji, M. (2013). Electricity Supply, Fossil fuel Consumption, Co2 Emissions and Economic Growth: Implications and Policy Options for Sustainable Development in Nigeria. International Journal of Energy Economics and Policy, 3(3), 262–271. Retrieved from https://econjournals.com/index.php/ijeep/article/view/465

Issue

Vol. 3 No. 3 (2013)

Section

Articles

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