Asymmetric Impact of Carbon Emission, Oil Price Shocks on Economic Growth in Nigeria (1981 – 2022).
Publication Date: 25/11/2024
Author(s): Emmanuel A. Ayangbemi, Ben Obi (Prof.).
Volume/Issue: Volume 7 , Issue 4 (2024)
Abstract:
The study examines the asymmetric impact of carbon emissions and oil prices on economic growth in Nigeria. The research is conducted using annual time series data running from 1986 to 2019. The study employs Nonlinear autoregressive distributed lag models (NARDL) as the estimation technique. The variables used in the analysis were Gross Domestic Product (GDP), Carbon Emission (CO2), and Oil Price (OP). the NARDL result shows that carbon emission has a negative and significant impact on economic growth in the long run and the oil price has a positive and significant impact on economic growth in both the short-run and long-run. Based on the empirical outcomes of the result obtained, the following recommendations were offered: The implementation of economic diversification policy from oil reliance towards dependence on other sustainable and energy types (renewable energy resources), should be sustain and strengthen especially. The private sectors should also tap into the opportunities that are available in the oil sector, such as the decarbonization programme in order to reduce carbon emissions from fossil fuels.
Keywords:
Economic growth; oil price; and carbon emission.
