Carbon Emission Accounting and Economic Growth in Nigeria

Abstract:This study investigated the relationship between carbon emission and economic growth in Nigeria for a period ranging from 1981-2018. The proxy for carbon emission is carbon dioxide CO2 and the proxy for economic growth is gross domestic product. The study used causal research design to mobilize data from the World Bank and Fact Fish publications while gross domestic product is sourced from the Central Bank of Nigeria Statistical Bulletin. The methods of descriptive statistics, Phillip-Perron, dynamic ordinary least Square and bivariate granger causality test are employed to analyze the data. The results show evidence of autoregressive effect of previous records of gross domestic product on its future value; there is an inverse relationship between carbon emission and gross domestic product. The bivariate granger causality confirms no existence of causality running between the variables. On the basis of the findings, the study concludes that there is an insignificant and negative relationship between carbon emission and Gross domestic product. It also concludes that CO2 and GDP are causally neutral to each other. It therefore recommends that earnest effort should be made by government to reduce greenhouse gas (GHG) in Nigeria by adhering to all relevant protocol and standards. Emissions not connected to the production of industrial and consumer goods should be taxed and avoided completely except the inevitable domestic emissions by practically applying the necessary laws both national and international. Precisely, focus should be shifted to going green in terms of energy generation, ensuring positive multiplier effect of constant power supply and the economics of clean air on the human health and productivity (PDF) Carbon Emission Accounting and Economic Growth in Nigeria. Available from: researchgate.net [accessed May 19 2021].