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Modeling the determinants of renewable energy consumption in Nigeria: Evidence from Autoregressive Distributed Lagged in error correction approach

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  • Somoye, Oluwatoyin Abidemi
  • Ozdeser, Huseyin
  • Seraj, Mehdi

Abstract

Different solutions have been designed to solve the climate change impacts. One recommended solution is to use renewable energy sources to power up economic activities. Renewable energy lowers the carbon footprint, generates no emissions and reduces harmful air pollutants. This research investigates the determinants of renewable energy consumption in Nigeria from 1960 to 2019 using the Parameterization Autoregressive Distributed Lagged in Error Correction approach. Nigeria is used as a case study because of its position and role in African and global economies. In the long-run, gross domestic product and financial development promote renewable energy consumption, and fossil fuel energy consumption harms renewable energy consumption. As gross domestic product increases by 1%, renewable energy consumption increases by 0.11%. A 1% increase in fossil fuel energy consumption decreases renewable energy consumption by 0.0008%. As financial development increases by 1%, renewable energy consumption increases by 0.026%. In the short-run, trade openness has a negative impact on renewable energy consumption. A 1% increase in trade openness decreases renewable energy consumption by 0.005%. Therefore, it is suggested that the Nigerian government continue to create policies that increase the Nigerian economy's productive capacity and regulate the importation of fossil fuel-related goods in favor of renewable energy products.

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  • Somoye, Oluwatoyin Abidemi & Ozdeser, Huseyin & Seraj, Mehdi, 2022. "Modeling the determinants of renewable energy consumption in Nigeria: Evidence from Autoregressive Distributed Lagged in error correction approach," Renewable Energy, Elsevier, vol. 190(C), pages 606-616.
    • Handle: RePEc:eee:renene:v:190:y:2022:i:c:p:606-616
    DOI: 10.1016/j.renene.2022.03.143
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    Cited by:

    1. Oluwatoyin Abidemi Somoye & Mehdi Seraj & Huseyin Ozdeser & Muhammad Mar’I, 2023. "Quantile relationship between financial development, income, price, CO2 emissions and renewable energy consumption: evidence from Nigeria," Letters in Spatial and Resource Sciences, Springer, vol. 16(1), pages 1-25, December.
    2. Lin, Boqiang & Huang, Chenchen, 2023. "Promoting variable renewable energy integration: The moderating effect of digitalization," Applied Energy, Elsevier, vol. 337(C).
    3. Bhandari, Ramchandra, 2022. "Green hydrogen production potential in West Africa – Case of Niger," Renewable Energy, Elsevier, vol. 196(C), pages 800-811.
    4. Aydin, Mucahit & Bozatli, Oguzhan, 2023. "The effects of green innovation, environmental taxes, and financial development on renewable energy consumption in OECD countries," Energy, Elsevier, vol. 280(C).
    5. Uju Regina Ezenekwe & Eze A. Eze & Geraldine Ejiaka Nzeribe & Maria Chinecherem Uzonwanne, 2023. "Winning the Environmental Sustainability Crusade: Do Agricultural Development and Public Debt Mitigate Environmental Pollution in Nigeria?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1481-1497, September.
    6. Onuoha, Favour Chidinma & Dimnwobi, Stephen Kelechi & Okere, Kingsley Ikechukwu & Ekesiobi, Chukwunonso, 2023. "Funding the green transition: Governance quality, public debt, and renewable energy consumption in Sub-Saharan Africa," Utilities Policy, Elsevier, vol. 82(C).

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