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Electricity Consumption, Public Agricultural Expenditure and Output in Nigeria: A Time Series Dynamic Approach

Author

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  • Uchechukwu E. Okorie

    (Department of Economics and Development Studies and Fellow, Centre for Economic Policy and Development Research, Covenant University Ota, Nigeria,)

  • Evans S. Osabuohien

    (Centre for Economic Policy and Development Research, Covenant University, Ota, Nigeria,)

  • Hassan E. Oaikhenan

    (University of Benin, Benin, Nigeria.)

Abstract

This study interrogates the effects of electricity consumption and government agricultural spending on agricultural output in Nigeria using data that spanning through from 1981 to 2017. The unit root test was conducted with Phillip Perron (PP) at constant and trend while the dynamic model of autoregressive distributed lags (ARDL) was used in ascertaining the existence of cointegration among the variables in the model. The outcome of the study shows that poor electricity supply has significantly retarded the level of agricultural output in Nigeria while public agricultural spending indicates a weak positive lag effect on agricultural sector performance. These outcomes capture the adverse effect of shortage in electric energy supply and poor government allocation on agricultural production of goods and services. We, therefore, advocate for sector-driven energy policies that will foster the growth and development of the agricultural sector through mechanisation of agricultural system.

Suggested Citation

  • Uchechukwu E. Okorie & Evans S. Osabuohien & Hassan E. Oaikhenan, 2020. "Electricity Consumption, Public Agricultural Expenditure and Output in Nigeria: A Time Series Dynamic Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 113-123.
    • Handle: RePEc:eco:journ2:2020-02-15
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    References listed on IDEAS

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    Cited by:

    1. Oluwafadekemi S. Areo & Obindah Gershon & Evans Osabuohien, 2020. "Improved Public Services and Tax Compliance of Small and Medium Scale Enterprises in Nigeria: A Generalised Ordered Logistic Regression," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(7), pages 833-860, July.
    2. Oluwasogo S. Adediran & Ibiene Benibo & Doris Akinpelumi, 2021. "Biomass Energy Consumption and Economic Growth: An Assessment of the Relevance of Sustainable Development Goal 7 in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 43-49.
    3. Olusola Joshua Olujobi & Daniel E. Ufua & Uchechukwu Emena Okorie & Mercy E. Ogbari, 2022. "Carbon emission, solid waste management, and electricity generation: a legal and empirical perspective for renewable energy in Nigeria," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(3), pages 599-619, September.

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    More about this item

    Keywords

    Electricity Supply; Government Expenditure; Agricultural Sector.;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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