TRADE OPENNESS, FOREIGN DIRECT INVESTMENT, ENERGY CONSUMPTION, ECONOMIC GROWTH, AND ENVIRONMENTAL QUALITY: EMPIRICAL EVIDENCE FROM NIGERIA
Moses Ogbu, Ilemona Adofu and Ibrahim Aishatu Ogiri
Volume 4 Issue 1
Abstract
The study examines the impacts of trade openness, foreign direct investment, gross domestic product, renewable and non-renewable energy consumption on carbon emission in Nigeria. Johansen cointegration test as well as Vector Error Correction Model (VECM) was deployed for the study. The study established that GDP growth, FDI, trade openness and non-renewable energy have long run negative impact on environmental quality whereas renewable energy consumption was discovered to improve the quality of the environment in the long run. The study recommends that law makers should articulate laws that discourage environmental pollution and reinforces the use of renewable energy. Budget allocation to renewable energy projects should be beef up while firms that deals on renewable energy should be allowed tax holiday. Foreign investment policies should be well articulated in ways that does not compromise the quality of the environment. Key words: Carbon Emission, FDI, Trade Openness, Energy, GDP, EKC Model
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