The paper examines the impact of energy consumption on economic growth and environmental quality and also verifies the existence of the Environmental Kuznets Curve (EKC) hypothesis in Nigeria. The Autoregressive Distributed Lag (ARDL) approach was used to estimate data covering 1981-2015 period. The result of the first model reveals evidence of inverse and significant impact of energy consumption on economic growth. Capital and trade openness show evidence of positive and significant impact on economic growth but labour reveals a negative and significant impact on economic growth. The result of the second model suggests that energy consumption is significant and positively related to environmental quality. As such, greater consumption of primary energy such as petroleum and natural gas increase carbon emissions which subsequently reduce environmental quality. Trade openness was also found to improve environmental quality. Furthermore, the test for EKC hypothesis did not reveal any evidence of its existence in Nigeria. This could result from the fact that growth level has not been expanded to a certain threshold beyond which additional expansion can reduce carbon emissions and improves environmental sustainability. The study recommends that efficiency in the use of conventional energy will go long way in reducing energy-related carbon emissions and enhance environmental sustainability. While improving human capital development will enhance the impact of labour force on economic growth in Nigeria.
How to Cite
energy consumption, economic growth, enviroment, Nigeria
Abam, F. I., Nwankwojike, B. N., Ohunakin, O. S., & Ojomu, S. A. (2014). Energy resource structure and on-going sustainable development policy in Nigeria: a review. International Journal of Energy and Environmental Engineering, 5(2-3), 1–16.
Alam, M. M., Murad, M. W., Noman, A. H. M., & Ozturk, I. (2016). Relationships among carbon emissions, economic growth, energy consumption and population growth: Testing Environmental Kuznets Curve hypothesis for Brazil, China, India and Indonesia. Ecological Indicators, 70, 466–479.
Ajoku, K. B. (2012). Modern Use of Solid Biomass in Africa: Prospects for Utilization of Agro-Waste Resources in Nigeria, Bio-energy for Sustainable Development in Africa, 131–146.
Amoo, O. M., & Fagbenle, R. (2013). Renewable municipal solid waste pathways for energy generation and sustainable development in the Nigerian context. International Journal of Energy and Environmental Engineering, 4(1), 42.
Bello, A., K. & Abimbola, O., M. (2010) does the level of economic growth influence environmental quality in Malaysia? A test of Environmental Kuznets Curve (EKC) Hypothesis, Pakistan Journal of Social Sciences, 7 (4), 325-329
Chen, P.Y., Chen, S.T., Hsu, C.S., & Chen, C.-C. (2016). Modeling the global relationships among economic growth, energy consumption and CO2 emissions. Renewable and Sustainable Energy Reviews, 65, 420–431.
Chindo, S., Abdulrahim, A., Waziri, S. I., Huong, W. M., & Ahmad, A. A. (2015). Energy consumption, CO2 emissions and GDP in Nigeria. GeoJournal, 80(3), 315–322.
ECN, (2013). National Energy Policy, Federal Republic of Nigeria [Draft Revised Edition]. Available at www.energy.gov.ng/
Edomah, N. (2016). On the path to sustainability: Key issues on Nigeria’s sustainable energy development. Energy Reports, 2, 28–34.
Grossman, G., & Krueger, A., (1995). Economic growth and the environment: Quarterly Journal of Economics 110 (2), 352–377.
IEA (2015). International Energy Agency: available at www.iea.org/
Kanellakis, M., Martinopoulos, G., & Zachariadis, T. (2013). European energy policy—A review. Energy Policy, 62, 1020–1030.
Narayan, P. K. (2005). The saving and investment nexus for China: evidence from cointegration tests. Applied Economics, 37(17), 1979–1990.
Mutascu, M. (2016). A bootstrap panel Granger causality analysis of energy consumption and economic growth in the G7 countries. Renewable and Sustainable Energy Reviews, 63, 166–171.
Narayan, S. (2016). Predictability within the energy consumption-economic growth nexus: Some evidence from income and regional groups. Economic Modelling, 54, 515–521.
Narayan, P.K., Smyth, R., (2005). Electricity consumption, employment and real income in Australia: evidence from multivariate Granger causality tests.Energy Policy 33, 1109–1116
Olatomiwa, L., Mekhilef, S., Huda, A. S. N., & Ohunakin, O. S. (2015). Economic evaluation of hybrid energy systems for rural electrification in six geo-political zones of Nigeria. Renewable Energy, 83, 435–446.
Omri, A., Daly, S., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Economics, 48, 242–252.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.
Rafindadi, A. A. (2016). Does the need for economic growth influence energy consumption and CO2 emissions in Nigeria? Evidence from the innovation accounting test. Renewable and Sustainable Energy Reviews, 62, 1209–1225.
Sbia, R., Shahbaz, M., & Hamdi, H. (2014). A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE. Economic Modelling, 36, 191–197.
Saidi, K., & Hammami, S. (2015). The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports, 1, 62–70.
Shahbaz, M., Arouri, M., & Teulon, F. (2014). Short- and long-run relationships between natural gas consumption and economic growth: Evidence from Pakistan. Economic Modelling, 41, 219–226.
Streimikiene, D., & Kasperowicz, R. (2016). Review of economic growth and energy consumption: A panel cointegration analysis for EU countries. Renewable and Sustainable Energy Reviews, 59, 1545–1549
UNFCCC (2015). United Nations Framework Convention on Climate Change: available at www.unfccc.int/
WDI (2015).World Bank's world development indicators: available at http:// www.worldbank.org
Wang, S., Zhou, C., Li, G., & Feng, K. (2016). CO2, economic growth, and energy consumption in China’s provinces: Investigating the spatiotemporal and econometric characteristics of China's CO2 emissions. Ecological Indicators, 69, 184–195.
Zhu, H., Duan, L., Guo, Y., & Yu, K. (2016). The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: Evidence from panel quantile regression. Economic Modelling, 58, 237–248.
Zoramawa, L. B., Ezekiel, M. P., & Umar, S. (2020). An analysis of the impact of non-oil exports on economic growth: Evidence from Nigeria. Journal of Research in Emerging Markets, 2 (1), 15-23.