Carbon Emissions, Human Capital Investment and Economic Development in Nigeria

Authors

  • Olufunmilayo T. Afolayan 1. Covenant University, Ota, Nigeria. 2. The Federal Polytechnic, Ilaro, Nigeria.
  • Henry Okodua Covenant University, Ota, Nigeria.
  • Hassan Oaikhenan University of Benin, Benin, Nigeria.
  • Oluwatoyin Matthew Covenant University, Ota, Nigeria.

Abstract

This study examined the joint effect of carbon emissions and health investment on economic development in Nigeria by integrating ecological economics approach with the endogenous growth model. Through the adoption of annual time series spanning 1980-2017, the bounds testing approach of the Autoregressive Distributed Lag (ARDL) framework established the existence of co-integration among the variables in the model. The long run estimates revealed that a 1% increase in government health investments enhances economic development (proxied by GDP per capita) by 0.008% while a 1% increase in the level of CO2 reduces GDP per capita by 0.1%. Furthermore, evidence shows that no causal link exists between fossil fuel consumption (FFC) and CO2 contrary to previous studies. However, unidirectional causality from health outcomes (proxied by life expectancy) to CO2, as well as from CO2 to electricity consumption (ELCON) is observed. Also, increased energy consumption (FFC and ELCON) directly influences GDP per capita. The study recommends that efforts to reduce CO2 should target firms manufacturing cement, asbestos and other dust-generating products as alternative contributors to CO2 accumulation. Equally, mitigating the health effect of CO2 will require effective, efficient and adequate public health investment.

Keywords: Carbon Emissions, Government Health Expenditure, Economic Development.

JEL Classifications: Q53, H51, O1

DOI: https://doi.org/10.32479/ijeep.8476

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Author Biographies

Olufunmilayo T. Afolayan, 1. Covenant University, Ota, Nigeria. 2. The Federal Polytechnic, Ilaro, Nigeria.

General Studies Department, The Federal Polytechnic, Ilaro, Nigeria.Principal Lecturer

Henry Okodua, Covenant University, Ota, Nigeria.

Department of Economics and Development Studies, Covenant University, Ota, Nigeria.

Hassan Oaikhenan, University of Benin, Benin, Nigeria.

Department of Economics and Statistics, University of Benin, Benin, Nigeria.

Oluwatoyin Matthew, Covenant University, Ota, Nigeria.

Department of Economics and Development Studies, Covenant University, Ota, Nigeria.

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Published

2020-01-21

How to Cite

Afolayan, O. T., Okodua, H., Oaikhenan, H., & Matthew, O. (2020). Carbon Emissions, Human Capital Investment and Economic Development in Nigeria. International Journal of Energy Economics and Policy, 10(2), 427–437. Retrieved from https://econjournals.com/index.php/ijeep/article/view/8476

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