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Dynamic Impact of Energy Consumption on the Growth of Nigeria Economy (1986-2016): Evidence from Symmetrical Autoregressive Distributed Lag Model

Author

Listed:
  • Egbichi Comfort

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria)

  • Abuh Ojamaliya

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Okafor Victoria

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria)

  • Godwin Abigail

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Adedoyin Oluwapelumi

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria.)

Abstract

This paper empirically examined the dynamic impact of energy consumption on the growth of Nigeria economy between 1986 and 2016 using symmetrical ARDL model approach. Findings from the study revealed that electricity consumption has not had a significant impact on the growth of the Nigerian economy. It shows that due to fluctuations in electricity supply, the growth of Nigerian economy has been on the decline. However, petroleum consumption was discovered to have a significant impact on economic growth in Nigeria; while gas consumption was discovered to have no significant impact on the growth of Nigeria economy. This was attributed to gas flaring activities and other environmental abuses that had caused major Niger-delta crisis and attendant consequences like pipeline vandalization and hostage taking. Suggestive from the study therefore are that government should undertake a cogent approach towards reforming the electricity supply sector as its paramount for the country s quest for industrialization.

Suggested Citation

  • Egbichi Comfort & Abuh Ojamaliya & Okafor Victoria & Godwin Abigail & Adedoyin Oluwapelumi, 2018. "Dynamic Impact of Energy Consumption on the Growth of Nigeria Economy (1986-2016): Evidence from Symmetrical Autoregressive Distributed Lag Model," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 188-195.
    • Handle: RePEc:eco:journ2:2018-02-25
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    References listed on IDEAS

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    Cited by:

    1. Chigozie Nelson Nkalu & Richardson Kojo Edeme, 2019. "Environmental Hazards and Life Expectancy in Africa: Evidence From GARCH Model," SAGE Open, , vol. 9(1), pages 21582440198, February.
    2. Lawrence U. Okoye & Alexander E. Omankhanlen & Johnson I. Okoh & Ngozi B. Adeleye & Felix N. Ezeji & Gideon K. Ezu & Benjamin I. Ehikioya, 2021. "Analyzing the Energy Consumption and Economic Growth Nexus in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 378-387.
    3. Karen Fernandes & Y. V. Reddy, 2020. "Energy Consumption and Economic Growth in Newly Industrialised Countries of Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 384-391.
    4. Valery F. Anisimov & Yuri V. Truntsevsky & Valery V. Bessel & Saltanat Yessetova, 2020. "Prospects of Development of the Oil Industry in the Global Economy and in the Regional Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 265-279.
    5. Kouton, Jeffrey, 2019. "The asymmetric linkage between energy use and economic growth in selected African countries: Evidence from a nonlinear panel autoregressive distributed lag model," Energy Economics, Elsevier, vol. 83(C), pages 475-490.
    6. Buyung Romadhoni & Akhmad Akhmad, 2020. "Household Electricity Demand in South Sulawesi, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 229-233.
    7. Ayobami Abayomi Popoola & Hangwelani Hope Magidimisha, 2019. "Rural Energy Conditions in Oyo State: Present and Future Perspectives on the Untapped Resources," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 419-432.
    8. Lawrence U. Okoye & Alexander E. Omankhanlen & Johnson I. Okoh & Uchechukwu E. Okorie & Felix N. Ezeji & Benjamin I. Ehikioya & Gideon K. Ezu, 2021. "Effect of Energy Utilization and Financial Development on Economic Growth in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 392-401.

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    More about this item

    Keywords

    Energy Consumption; Economic Growth; Petroleum; Gas and Electricity;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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