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Gas Flaring Effects and Revenue Made from Crude Oil in Nigeria

Author

Listed:
  • Nasiru Yunusa

    (Department of Accounting, Kongo Campus, Faculty of Administration, Ahmadu Bello University, Zaria, Nigeria,)

  • Ismail Tijjani Idris

    (Department of Business Administration, Faculty of Administration, Ahmadu Bello University, Zaria, Nigeria)

  • Adamu Garba Zango

    (Zumiin Research and Consulting Limited, Kano State, Nigeria)

  • Muhammad Umar Kibiya

    (School of Management Studies, BUK Road, Kano State Polytechnic, Kano, Nigeria.)

Abstract

The study examines gas flaring and crude oil revenue in Nigeria. The study used secondary data for 14 years from 2000 to 2014 inclusive to analyze the issue using multiple regression analysis. The study employed time series data hence, a unit root test is conducted and found that they are stationary at level. Using three variables, gas flaring as the aggregate amount of gas flared by oil producing companies in Nigeria as an independent variable and crude oil revenue as an aggregate of revenue generated from all oil companies crude oil as dependent variable and tax as penalty on flaring is used as a control variable, the findings of the study show that gas flaring has a negative impact on Nigerian crude oil revenue and is statistically significant. From the research there are strong indications that the implementation of regulations and incentives to abate gas glaring in Nigeria has to be improving in other to increase revenue generated from crude oil. The author suggests that government should embark seriously on gas utilization policy and increase the penalty for companies who still engage in gas flaring. In addition, the government should utilize the gas flaring for electricity generation or implore another means of either utilizing it or curtail it.

Suggested Citation

  • Nasiru Yunusa & Ismail Tijjani Idris & Adamu Garba Zango & Muhammad Umar Kibiya, 2016. "Gas Flaring Effects and Revenue Made from Crude Oil in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 617-620.
    • Handle: RePEc:eco:journ2:2016-03-31
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    References listed on IDEAS

    as
    1. Boxall, Peter C. & Chan, Wing H. & McMillan, Melville L., 2005. "The impact of oil and natural gas facilities on rural residential property values: a spatial hedonic analysis," Resource and Energy Economics, Elsevier, vol. 27(3), pages 248-269, October.
    2. Odusola, Ayodele & Orubu, Christopher & Ehwarieme, William, 2004. "The Nigerian Oil Industry: Environmental Diseconomies, Management Strategies and the Need for Community Involvement," UNDP Africa Economists Working Papers 307330, United Nations Development Programme (UNDP).
    3. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    4. Anomohanran, O., 2012. "Determination of greenhouse gas emission resulting from gas flaring activities in Nigeria," Energy Policy, Elsevier, vol. 45(C), pages 666-670.
    5. Peter C. Boxall, Wing H. Chan, and Melville L. McMillan, 2005. "The Impact of Oil and Natural Gas Facilities on Rural Residential Property," Working Papers eg0039, Wilfrid Laurier University, Department of Economics, revised 2005.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Okoro, Emmanuel E. & Adeleye, Bosede N. & Okoye, Lawrence U. & Maxwell, Omeje, 2021. "Gas flaring, ineffective utilization of energy resource and associated economic impact in Nigeria: Evidence from ARDL and Bayer-Hanck cointegration techniques," Energy Policy, Elsevier, vol. 153(C).
    2. Oluyomi A. Osobajo & Olushola E. Ajide & Afolabi Otitoju, 2020. "Fostering Sustainable Development: A Corporate Social Responsibility Approach," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 9(2), pages 1-62, March.

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    More about this item

    Keywords

    Gas Flaring; Carbon Emission; Crude Oil Revenue;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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