IDEAS home Printed from https://ideas.repec.org/p/exs/wpaper/19-059.html
   My bibliography  Save this paper

Environmental Pollution, Economic Growth and Institutional Quality: Exploring the Nexus in Nigeria

Author

Listed:
  • Samuel Egbetokun

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Evans S. Osabuohien

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Temidayo Akinbobola

    (Obafemi Awolowo University, Ile-Ife, Nigeria)

  • Olaronke Onanuga

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Obindah Gershon

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Victoria Okafor

    (CEPDeR, Covenant University, Ota, Nigeria)

Abstract

The interaction between environmental pollution and economic growth determines the achievement of the green growth objective of developing economies. An economy turns around the inverted U-shaped Environmental Kuznets Curve (EKC) when pollution is effectively dampened by social, political and economic factors as such economy grows. Thus, this study examines the EKC considering the impact of institutional quality on six variables of environmental pollution [carbon dioxide (CO2), Nitrous Oxide (N2O), Suspended Particulate Maters (SPM), Rainfall, Temperature and Total Green House Emission (TGH)] using the case of Nigeria. The EKC model includes population density, education expenditure, foreign direct investment, and gross domestic investment as control variables, and it was analysed using the Auto Regressive Distribution Lag (ARDL) econometric technique, which has not been applied in the literature on Nigeria. The results, inter alia, indicate that there is EKC for CO2 and SPM. This implies that the green growth objective can be pursued in Nigeria with concerted efforts. Other environmental pollution indicators did not exert significant influence on economic growth. Therefore, it is recommended that Nigeria’s institutional quality be strengthened to limit environmental pollution in light of economic growth.

Suggested Citation

  • Samuel Egbetokun & Evans S. Osabuohien & Temidayo Akinbobola & Olaronke Onanuga & Obindah Gershon & Victoria Okafor, 2019. "Environmental Pollution, Economic Growth and Institutional Quality: Exploring the Nexus in Nigeria," Working Papers 19/059, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:19/059
    as

    Download full text from publisher

    File URL: http://publications.excas.org/RePEc/exs/exs-wpaper/Environmental-Pollution-Economic-Growth-and-Institutional-Quality-Exploring-the-Nexus-in-Nigeria.pdf
    File Function: Revised version, 2019
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Twerefou Daniel Kwabena & Adusah-Poku Frank & Bekoe William, 2016. "An empirical examination of the Environmental Kuznets Curve hypothesis for carbon dioxide emissions in Ghana: an ARDL approach," Environmental & Socio-economic Studies, Sciendo, vol. 4(4), pages 1-12, December.
    2. Opeyemi, Akinyemi & Uchenna, Efobi & Simplice, Asongu & Evans, Osabuohein, 2019. "Renewable energy, trade performance and the conditional role of finance and institutional capacity in sub-Sahara African countries," Energy Policy, Elsevier, vol. 132(C), pages 490-498.
    3. Samuel Egbetokun & Evans S. Osabuohien & Temidayo Akinbobola, 2018. "Feasible Environmental Kuznets and Institutional Quality in North and Southern African Sub-regions," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 104-115.
    4. He, Jie & Richard, Patrick, 2010. "Environmental Kuznets curve for CO2 in Canada," Ecological Economics, Elsevier, vol. 69(5), pages 1083-1093, March.
    5. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    6. Aron, Janine, 2000. "Growth and Institutions: A Review of the Evidence," The World Bank Research Observer, World Bank, vol. 15(1), pages 99-135, February.
    7. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    8. Panayotou, Theodore, 1997. "Demystifying the environmental Kuznets curve: turning a black box into a policy tool," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 465-484, November.
    9. Hettige, Hemamala & Lucas, Robert E B & Wheeler, David, 1992. "The Toxic Intensity of Industrial Production: Global Patterns, Trends, and Trade Policy," American Economic Review, American Economic Association, vol. 82(2), pages 478-481, May.
    10. Akpan, Usenobong F. & Chuku, Agbai, 2011. "Economic Growth and Environmental Degradation in Nigeria: Beyond the Environmental Kuznets Curve," MPRA Paper 31241, University Library of Munich, Germany.
    11. 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.
    12. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    13. Ali, Wajahat & Abdullah, Azrai & Azam, Muhammad, 2017. "Re-visiting the environmental Kuznets curve hypothesis for Malaysia: Fresh evidence from ARDL bounds testing approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 990-1000.
    14. Kingston, Kato Gogo, 2011. "The Dilemma of Minerals Dependent Economy: The case of Foreign Direct Investment and Pollution in Nigeria," MPRA Paper 28603, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    2. Ayodele Asekomeh & Obindah Gershon & Smith I. Azubuike, 2021. "Optimally Clocking the Low Carbon Energy Mile to Achieve the Sustainable Development Goals: Evidence from Dundee’s Electric Vehicle Strategy," Energies, MDPI, vol. 14(4), pages 1-23, February.
    3. 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.
    4. Hao Xu & Yeqing Wang & Hongwei Liu & Ronglu Yang, 2020. "Environmental Efficiency Measurement and Convergence Analysis of Interprovincial Road Transport in China," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    5. Bosede Ngozi Adeleye & Darlington Akam & Nasiru Inuwa & Muftau Olarinde & Victoria Okafor & Ifeoluwa Ogunrinola & Paul Adekola, 2021. "Investigating Growth-Energy-Emissions Trilemma in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 112-120.
    6. Muhammad Sohail Amjad Makhdum & Muhammad Usman & Rakhshanda Kousar & Javier Cifuentes-Faura & Magdalena Radulescu & Daniel Balsalobre-Lorente, 2022. "How Do Institutional Quality, Natural Resources, Renewable Energy, and Financial Development Reduce Ecological Footprint without Hindering Economic Growth Trajectory? Evidence from China," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    7. Weikun Zhang & Peng Gao & Zhe Chen & Hailan Qiu, 2023. "Preventing Agricultural Non-Point Source Pollution in China: The Effect of Environmental Regulation with Digitization," IJERPH, MDPI, vol. 20(5), pages 1-17, March.
    8. Okon Emmanuel O., 2021. "Nigeria: Is There an Environmental Kuznets Curve for Fluorinated Gases?," Open Economics, De Gruyter, vol. 4(1), pages 57-71, January.
    9. Feng Wang & Tayyaba Rani & Asif Razzaq, 2023. "Environmental impact of fiscal decentralization, green technology innovation and institution’s efficiency in developed countries using advance panel modelling," Energy & Environment, , vol. 34(4), pages 1006-1030, June.
    10. Danish I. Godil & Zhang Yu & Arshian Sharif & Rimsha Usman & Syed Abdul Rehman Khan, 2021. "Investigate the role of technology innovation and renewable energy in reducing transport sector CO2 emission in China: A path toward sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 694-707, July.
    11. 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.
    12. Folasade Bosede Adegboye & Romanus Osabohien & Felicia O. Olokoyo & Oluwatoyin Matthew & Oluwasogo Adediran, 2020. "Institutional quality, foreign direct investment, and economic development in sub-Saharan Africa," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-9, December.

    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. Lau, Lin-Sea & Choong, Chee-Keong & Eng, Yoke-Kee, 2014. "Carbon dioxide emission, institutional quality, and economic growth: Empirical evidence in Malaysia," Renewable Energy, Elsevier, vol. 68(C), pages 276-281.
    2. Samuel Egbetokun & Evans S. Osabuohien & Temidayo Akinbobola, 2018. "Feasible Environmental Kuznets and Institutional Quality in North and Southern African Sub-regions," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 104-115.
    3. Godwin Effiong Akpan & Usenobong Friday Akpan, 2012. "Electricity Consumption, Carbon Emissions and Economic Growth in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 292-306.
    4. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    5. Bekhet, Hussain Ali & Othman, Nor Salwati, 2018. "The role of renewable energy to validate dynamic interaction between CO2 emissions and GDP toward sustainable development in Malaysia," Energy Economics, Elsevier, vol. 72(C), pages 47-61.
    6. Garikai Makuyana & Nicholas M. Odhiambo, 2019. "Public and private investment and economic growth in Malawi: an ARDL-bounds testing approach," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 673-689, January.
    7. Esteve, Vicente & Tamarit, Cecilio, 2012. "Threshold cointegration and nonlinear adjustment between CO2 and income: The Environmental Kuznets Curve in Spain, 1857–2007," Energy Economics, Elsevier, vol. 34(6), pages 2148-2156.
    8. Nino Fonseca & Marcelino Sánchez-Rivero, 2020. "Significance bias in the tourism-led growth literature," Tourism Economics, , vol. 26(1), pages 137-154, February.
    9. Angeliki N. Menegaki, 2019. "The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies," Economies, MDPI, vol. 7(4), pages 1-16, October.
    10. Nyasha S. & Odhiambo N. M., 2016. "The Impact of Bank-Based and Market-Based Financial Development on Economic Growth: Time-Series Evidence From the United Kingdom," Global Economy Journal, De Gruyter, vol. 16(2), pages 389-410, June.
    11. Brown, Leanora & McFarlane, Adian & Campbell, Kaycea & Das, Anupam, 2020. "Remittances and CO2 emissions in Jamaica: An asymmetric modified environmental kuznets curve," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    12. Enock Nyorekwa Twinoburyo & Nicholas M Odhiambo, 2018. "Can Monetary Policy drive economic growth? Empirical evidence from Tanzania," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(2), June.
    13. Irwan Shah Zainal Abidin & Muhammad Haseeb & Muhammad Azam & Rabiul Islam, 2015. "Foreign Direct Investment, Financial Development, International Trade and Energy Consumption: Panel Data Evidence from Selected ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 841-850.
    14. Shahbaz, Muhammad & Hye, Qazi Muhammad Adnan & Tiwari, Aviral Kumar & Leitão, Nuno Carlos, 2013. "Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 109-121.
    15. Piaggio, Matías & Padilla, Emilio, 2012. "CO2 emissions and economic activity: Heterogeneity across countries and non-stationary series," Energy Policy, Elsevier, vol. 46(C), pages 370-381.
    16. MAKUYANA, Garikai & ODHIAMBO, Nicholas M., 2018. "Public and Private Investment and Economic Growth in Zambia: A Dynamic Approach," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 71(4), pages 503-526.
    17. Bibhuti Ranjan Mishra & Asit Mohanty, 2017. "An Empirical Analysis of Aggregate Import Demand Function for India," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(4), pages 1-12, December.
    18. Akpan, Usenobong F. & Chuku, Agbai, 2011. "Economic Growth and Environmental Degradation in Nigeria: Beyond the Environmental Kuznets Curve," MPRA Paper 31241, University Library of Munich, Germany.
    19. Shahbaz, Muhammad & Mutascu, Mihai & Azim, Parvez, 2013. "Environmental Kuznets curve in Romania and the role of energy consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 165-173.
    20. Alam, Mohammad Jahangir & Ahmed, Mumtaz & Begum, Ismat Ara, 2017. "Nexus between non-renewable energy demand and economic growth in Bangladesh: Application of Maximum Entropy Bootstrap approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 399-406.

    More about this item

    Keywords

    EKC; Economic Growth; Environmental Pollution; Institutional Quality;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:exs:wpaper:19/059. 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: Anutechia Asongu Simplice (email available below). General contact details of provider: http://excas.org/ .

    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.