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Economic development and environmental quality in Nigeria: is there an environmental Kuznets curve?

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  • Chuku, Agbai

Abstract

This study utilizes standard- and nested-EKC models to investigate the income-environment relation for Nigeria, between 1960 and 2008. The results from the standard-EKC model provides weak evidence of an inverted-U shaped relationship with turning point (T.P) around $280.84, while the nested model presents strong evidence of an N-shaped relationship between income and emissions in Nigeria, with a T.P around $237.23. Tests for structural breaks caused by the 1973 oil price shocks and 1986 Structural Adjustment are not rejected, implying that these factors have not significantly affected the income-environment relationship in Nigeria. Further, results from the rolling interdecadal analysis shows that the observed relationship is stable and insensitive to the sample interval chosen. Overall, our findings imply that economic development is compatible with environmental improvements in Nigeria. However, tighter and concentrated environmental policy regimes will be required to ensure that the relationship is maintained around the first two-strands of the N-shape

Suggested Citation

  • Chuku, Agbai, 2011. "Economic development and environmental quality in Nigeria: is there an environmental Kuznets curve?," MPRA Paper 30195, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:30195
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    Cited by:

    1. George Halkos & Iacovos Psarianos, 2016. "Exploring the effect of including the environment in the neoclassical growth model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 339-358, July.
    2. Halkos, George & Psarianos, Iacovos, 2015. "The effect of including the environment in the neoclassical growth model," MPRA Paper 68050, University Library of Munich, Germany.
    3. George HALKOS, 2012. "Environmental Pollution And Economic Development:Explaining The Existence Of An Environmental Kuznets Curve," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 6(6(18)/ Su), pages 148-159.
    4. Halkos, George, 2011. "Environment and economic development: determinants of an EKC hypothesis," MPRA Paper 33262, University Library of Munich, Germany.
    5. Sinha, Avik & Shahbaz, Muhammad & Balsalobre, Daniel, 2017. "Exploring the Relationship between Energy Usage Segregation and Environmental Degradation in N-11 Countries," MPRA Paper 81212, University Library of Munich, Germany, revised 07 Sep 2017.

    More about this item

    Keywords

    Environmental Kuznets curve; development; CO2 emissions; nested-EKC model; Nigeria;

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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