Impact Analysis on the Effective Synergy Between Climate Change, Ecological Degradation and Energy Consumption on Economic Growth in Nigeria

• Published in: SAGE open Vol. 11; no. 4
• Main Authors: Birnintsaba, Dahiru Alhaji-Bala, Ozdeser, Hüseyin, Saliminezhad, Andisheh
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 01.12.2021; SAGE PUBLICATIONS, INC; SAGE Publishing
• Subjects: Climate change; Economic growth; Energy consumption; Population growth; Renewable resources; Nigeria; ecological degradation; Nigeria; energy consumption; economic growth; climate change
• ISSN: 2158-2440; 2158-2440
• DOI: 10.1177/21582440211061361

There is growing global concern about the unpredictable nature of climate change and rapid ecological degradation, which has emanated from quest to enhance economic growth in many parts of the world. In spite of the potential offered by green energy, developing economies such as Nigeria are lagging behind in the application of renewable energy. The synergic impact of climate change, ecological degradation and some key macroeconomic variables remains partially unexplored. Considering this gap in the literature, the objective of the study is to examine the impact of climatic change, ecological degradation, population growth and energy consumption on economic growth in Nigeria. The dynamic impacts of these key variables were analyzed using the Autoregressive Distributed Lag model. While the bounds test results indicated that the variables are co-integrated, bidirectional causal flows were identified between economic growth, energy consumption, population growth, and climatic change. However, unidirectional relations exist running from ecological degradation to economic growth, as well as from population to economic growth. The study further found that climate change and ecological degradation are mutually reinforcing one another as a bidirectional causal relation was detected among the two variables. In this sense, it can be concluded that population growth, energy consumption, and ecological degradation are key contributors to sustainable growth that will reduce the threat of climate change. As such, there is a strong need for Nigeria to strengthen its environmental regulatory institutions to initiate a paradigm shift from conventional to renewable energy. This will reduce ecological degradation and enhance environmentally-friendly economic growth.