Foreign Direct Investment, Energy Consumption and Greenhouse Gas Emissions in Nigeria

Abstract

This paper investigated the nature of the relationship that exists between foreign direct investment, energy consumption, and greenhouse gas emissions in Nigeria between 1990 and 2020. The investigation was done using the ARDL method of analysis. The bounds cointegration test found the existence of long run relationship among the variables. The long run estimation result showed that foreign direct investment in Nigeria has a negatively significant impact on greenhouse gas emission in the short run and long run. The result also shows that AGO consumption has a negatively insignificant impact on greenhouse gas emission in the short run and long run. While PMS consumption has a positively significant impact on greenhouse gas emission in the long run. The model goes on to propose the use of government policies that would promote FDI investment in Nigeria and a more business friendly environment