Analysis of Environmental Degradation and its Determinants in Nigeria: New Evidence from ARDL and Causality Approaches

Adekunle, Wasiu and Omo-Ikirodah, Beatrice and Collins, Olutosin and Adeniyi, Andrew and Bagudo, Abubakar and Mosobalaje, Risikat and Oladepo, Safiyyah (2021): Analysis of Environmental Degradation and its Determinants in Nigeria: New Evidence from ARDL and Causality Approaches.

Abstract

This paper extends the previous studies to re-examine the functional relations and causal links between environmental degradation and its possible determinants in Nigeria, covering 1977 to 2015. With the aid of ARDL model estimation, the study found a positive relationship between economic growth (measured by real GDP per capita and environmental degradation. A positive relation was also established between energy consumption and carbon emission. Similarly, this study reported a positive relationship between transport services in the import and export sectors and carbon emission. Through the Granger causality test, the study established a unidirectional causality running from carbon emission to economic growth. Similarly, there was a unidirectional causality from real GDP per capita to transport services in the export sector. Based on these findings, there is an increasing need for the authorities to regulate economic activities that directly and indirectly contribute to systematic environmental degradation in Nigeria.

• Item Type: MPRA Paper
• Language: English
• Keywords: Environmental degradation, Transport services, Economic growth, ARDL, Granger causality
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O44 - Environment and Growth

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