IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-7p3871-3879.html

The Relationship between Energy Transition, Economic Growth, and Carbon Emission in Nigeria

Author

Listed:
  • Ali Baba Usman

    (Department of Economics, BABA-AHMED University, Kano Nigeria)

  • Fadila Kabir Usman

    (Department of Economics, Nigerian Defence Academy, PMB, Kaduna-Nigeria)

  • Suleiman Sa’ad

    (Petroleum Studies Department, Organization of the Petroleum Exporting Countries (OPEC) Helferstorferstrasse, Vienna, Austria)

  • Solomon Ochada Omaye

    (Department of Economics, Nigerian Defence Academy, PMB, Kaduna-Nigeria)

  • Mansur Idris

    (Department of Economics, Bayero University Kano)

Abstract

This study investigates the relationship between energy transition, economic growth, and carbon emission in Nigeria. We employed three variables which are: (i) GDP as a proxy for economic growth (ii) Renewable energy consumption as a proxy for transition (iii) Carbon emission, and utilized the ARDL bound test technique developed by Pesaran, et, al. (2001) with an annual dataset ranging from 1990-2021. However, we found a long-run relationship among the variables, and that carbon emission has a negative and significant relationship in the long-run; but renewable energy consumption has a positive and significant effect on growth, though the short-run effect is negative. Also, renewable energy consumption has a negative effect on carbon emission in both the long-run and short-run. Therefore, the study recommend that the authority should invest heavily on renewables so as to make it accessible and sustainable to low-income earners.

Suggested Citation

  • Ali Baba Usman & Fadila Kabir Usman & Suleiman Sa’ad & Solomon Ochada Omaye & Mansur Idris, 2025. "The Relationship between Energy Transition, Economic Growth, and Carbon Emission in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 3871-3879, July.
  • Handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:3871-3879
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-7/3871-3879.pdf
    Download Restriction: no

    File URL: https://rsisinternational.org/journals/ijriss/articles/the-relationship-between-energy-transition-economic-growth-and-carbon-emission-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ozturk, Ilhan & Acaravci, Ali, 2010. "CO2 emissions, energy consumption and economic growth in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 3220-3225, December.
    2. Lee, Chien-Chiang & Chang, Chun-Ping, 2008. "Energy consumption and economic growth in Asian economies: A more comprehensive analysis using panel data," Resource and Energy Economics, Elsevier, vol. 30(1), pages 50-65, January.
    3. Jalil, Abdul & Feridun, Mete, 2011. "The impact of growth, energy and financial development on the environment in China: A cointegration analysis," Energy Economics, Elsevier, vol. 33(2), pages 284-291, March.
    4. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    5. Jayanthakumaran, Kankesu & Verma, Reetu & Liu, Ying, 2012. "CO2 emissions, energy consumption, trade and income: A comparative analysis of China and India," Energy Policy, Elsevier, vol. 42(C), pages 450-460.
    6. Zeren, Feyyaz & Akkuş, Hilmi Tunahan, 2020. "The relationship between renewable energy consumption and trade openness: New evidence from emerging economies," Renewable Energy, Elsevier, vol. 147(P1), pages 322-329.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    2. Seker, Fahri & Ertugrul, Hasan Murat & Cetin, Murat, 2015. "The impact of foreign direct investment on environmental quality: A bounds testing and causality analysis for Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 347-356.
    3. Al-Mulali, Usama & Saboori, Behnaz & Ozturk, Ilhan, 2015. "Investigating the environmental Kuznets curve hypothesis in Vietnam," Energy Policy, Elsevier, vol. 76(C), pages 123-131.
    4. Smyth, Russell & Narayan, Paresh Kumar, 2015. "Applied econometrics and implications for energy economics research," Energy Economics, Elsevier, vol. 50(C), pages 351-358.
    5. Tiwari, Aviral Kumar & Shahbaz, Muhammad & Adnan Hye, Qazi Muhammad, 2013. "The environmental Kuznets curve and the role of coal consumption in India: Cointegration and causality analysis in an open economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 519-527.
    6. Ghazala Aziz & Rida Waheed & Majid Ibrahim Alsaggaf, 2023. "Investigating the Impact of Green Natural Resources and Green Activities on Ecological Footprint: A Perspective of Saudi Vision 2030," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    7. Miguel Angel Esquivias & Owais ibni Hassan & Aisha Sheikh, 2023. "Evidence-based Examination of the Consequences of Financial Development on Environmental Degradation in the Indian Setting, Using the ARDL Model," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 281-290, January.
    8. Bouznit, Mohammed & Pablo-Romero, María del P., 2016. "CO2 emission and economic growth in Algeria," Energy Policy, Elsevier, vol. 96(C), pages 93-104.
    9. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    10. Muhammad, Shahbaz, 2012. "Multivariate granger causality between CO2 Emissions, energy intensity, financial development and economic growth: evidence from Portugal," MPRA Paper 37774, University Library of Munich, Germany, revised 31 Mar 2012.
    11. Ahad, Muhammad & Khan, Wali, 2016. "Does Globalization Impede Environmental Quality in Bangladesh? The Role of Real Economic Activities and Energy Use," MPRA Paper 76278, University Library of Munich, Germany, revised Jul 2016.
    12. Ahmed, Khalid & Bhattacharya, Mita & Qazi, Ahmer Qasim & Long, Wei, 2016. "Energy consumption in China and underlying factors in a changing landscape: Empirical evidence since the reform period," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 224-234.
    13. Ben Jebli, Mehdi & Ben Youssef, Slim, 2015. "The environmental Kuznets curve, economic growth, renewable and non-renewable energy, and trade in Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 173-185.
    14. Kahouli, Bassem, 2017. "The short and long run causality relationship among economic growth, energy consumption and financial development: Evidence from South Mediterranean Countries (SMCs)," Energy Economics, Elsevier, vol. 68(C), pages 19-30.
    15. Paresh Narayan & Russell Smyth, 2014. "Applied Econometrics and a Decade of Energy Economics Research," Monash Economics Working Papers 21-14, Monash University, Department of Economics.
    16. Shahbaz, Muhammad & Mallick, Hrushikesh & Kumar, Mantu & Loganathan, Nanthakumar, 2015. "Does Globalization Impede Environmental Quality in India?," MPRA Paper 67285, University Library of Munich, Germany, revised 15 Oct 2015.
    17. Boutabba, Mohamed Amine, 2014. "The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy," Economic Modelling, Elsevier, vol. 40(C), pages 33-41.
    18. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    19. Zambrano-Monserrate, Manuel A. & Silva-Zambrano, Carlos A. & Davalos-Penafiel, Jose L. & Zambrano-Monserrate, Andrea & Ruano, Maria Alejandra, 2018. "Testing environmental Kuznets curve hypothesis in Peru: The role of renewable electricity, petroleum and dry natural gas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4170-4178.
    20. Omri, Anis & Daly, Saida & Rault, Christophe & Chaibi, Anissa, 2015. "Financial development, environmental quality, trade and economic growth: What causes what in MENA countries," Energy Economics, Elsevier, vol. 48(C), pages 242-252.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:3871-3879. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.