Energy consumption, carbon dioxide emission and sustainable growth in Nigeria

Abstract

This study investigates whether the observed reduction in energy intensity in Nigeria between 1970 and 2014 will be sustainable, given a possible tie between energy and output and whether de-intensification or de-carbonisation will be a more sustainable approach to ensuring greener growth in Nigeria. Using time series data on real GDP, energy use, and carbon emission obtained from the Global Economic Monitor (GEM) from 1970 to 2014, results of correlation, copula, cointegration, and Granger causality as well as impulse response analyses show evidence of a weak positive tie between energy and growth for Nigeria, and that de-carbonisation is more sustainable in the short term while de-intensification is more sustainable in the longer term. This study concludes that de-carbonisation and de-intensification policies should be adopted in the short term and in the longer term, respectively, in pursuing greener growth in Nigeria.