EFFECT OF CARBON DIOXIDE EMISSIONS ON ECONOMIC GROWTH IN NIGERIA
Muhammad Dahiru Nakazalle, Muhammad Aliyu Tanko and Abdullahi Lawal Lala
Volume 2 Issue 2
Abstract
Many studies have been conducted on carbon emission and economic growth, however little has been done to examine the relationship using ARDL in Nigeria. This study examines the impact of carbon emission and economic growth on Nigeria using the Autoregressive Distributed Lag (ARDL) bounds testing technique to analyse annual data. In addition, the study controls for FDI, openness, credit and domestic investment. The result of the bounds test to cointegration indicates that there is a long run relationship between the variables. The results of the estimation show that rising carbon emission has a significant and positive effect on economic growth. In addition, openness and credit have a significant and positive effect on economic growth, while FDI and domestic investment have a negative and significant effect on economic growth. Based on these findings, this study makes the following recommendations. First, government should take appropriate steps to increase production in order to raise economic growth in Nigeria. Second, government should employ policies to curb environmental degradation. In addition, government should employ policies to promote openness to trade and encourage the banking sector to make credit available for the private sector in the economy of Nigeria. Keywords: Carbon Emission; Economic Growth; Nigeria.
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