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The Impact of Climate Change on the Nigerian Economy

Author

Listed:
  • Jonathan E. Ogbuabor

    (Department of Economics, University of Nigeria, Nsukka, Nigeria,)

  • Emmanuel I. Egwuchukwu

    (Department of Economics, University of Nigeria, Nsukka, Nigeria.)

Abstract

This paper examined the impact of climate change on the overall growth of the Nigerian economy. The ordinary least squares (OLS) estimation technique and data for the period 1981-2014 were used. Changes in annual rainfall, carbon emission and forest depletion were used to capture climate change, while changes in government expenditure, domestic private investment and exchange rate were used as control variables. The results indicate that both in the long-run and short-run, carbon emissions affect growth adversely. In addition, forest depletion impacts negatively on growth in the shortrun. These results imply that Nigerian government should evolve and implement policies to curb carbon emissions and forest depletion. In particular, a National Climate Change Commission is required in Nigeria to deal with all climate change issues. Furthermore, the finding that domestic private investment and naira-to-dollar exchange rate impede growth in Nigeria means that policymakers and governments at all levels in Nigeria should evolve and implement policies to reverse these undesirable outcomes.

Suggested Citation

  • Jonathan E. Ogbuabor & Emmanuel I. Egwuchukwu, 2017. "The Impact of Climate Change on the Nigerian Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 217-223.
    • Handle: RePEc:eco:journ2:2017-02-27
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Oliver I. Inah & Fidelis I. Abam & Bethrand N. Nwankwojike, 2022. "Exploring the CO2 emissions drivers in the Nigerian manufacturing sector through decomposition analysis and the potential of carbon tax (CAT) policy on CO2 mitigation," Future Business Journal, Springer, vol. 8(1), pages 1-22, December.
    2. Chimere O. Iheonu & Ekene ThankGod Emeka & Simplice A. Asongu & Princewill U. Okwoche, 2022. "Foreign Investment, International Trade and Environmental Sustainability: Exploring Ecological Footprints in 37 African Countries," Working Papers 22/068, European Xtramile Centre of African Studies (EXCAS).
    3. Esra KADANALI & Omer YALCINKAYA, 2020. "Effects of Climate Change on Economic Growth: Evidence from 20 Biggest Economies of the World," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 93-118, September.
    4. Angelina, Emmanuel & Onyeche, Ejembi D. & Paulina, Dominic O. E., 2022. "Coping Strategies Families Can Adopt to Manage Challenges of Climate Change in Adamawa State, Nigeria," International Journal of Home Economics, Hospitality and Allied Research, Department of Home Economics & Hospitality Management Education, University of Nigeria, Nsukka, vol. 1(1), pages 138-147, July.

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    More about this item

    Keywords

    Climate Change; Economic Growth; Ordinary Least Squares; Nigeria;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania

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