ECONOMIC GROWTH AND POLLUTION IN NIGERIA: AN ECONOMETRIC ASSESSMENT

Augustine Sunday Aghanenu, Edison James Uffie

Abstract


This work examined the relationship between economic growth and pollution in the Nigerian context using econometric approach. It utilized secondary (time-series) data culled from World Development Indicators (WDI). The study employed the methodology of descriptive statistics, unit root test and Cointegration. The study unit root test revealed that all variables in this study were stationary at first difference 1(1). However, the Trace and Maximum Eigenvalue showed that there was common stochastic drift among the variables. Hence, the Johansen Test of Cointegration showed that long-run equilibrium relationship existed among the variables utilized. Also, the Normalized Cointegrating Coefficients indicated that carbon dioxide (CO2) and nitrogen oxide (NO2) emissions undermined GDP per capita in the long-run while methane (CH4) significantly promoted it. The study recommended that carbon dioxide (C02) should be abated by firms and companies by installing sequestration machines and the adoption of pollution emissions friendly production techniques. It also suggested the imposition of Pigouvian tax on combustion emitters by the government while the use of methane (CH4) oxide has to be encouraged to enhance productivity and output growth.

 

JEL: O43, O44, R11

 

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Keywords


carbon dioxide, nitrous oxide, methane oxide, Pigouvian tax

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v0i0.487

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