Abstract
This study examines the relationship between economic growth and energy consumption in Nigeria by using ARDL Bound Test regression analysis. In the investigation process energy consumption, was disaggregated into electricity, coal and petroleum with growth rate of GDP data is used from 1980-2017. The findings show that petroleum and electricity variables are positive and significant to growth while coal is positive but not significant. Overall outcome is that energy consumption has a positive relationship with economic growth. The coal deposit must be put in use to increase energy production and consumption and stimulate other economic activities for growth Keywords: Energy consumption, economic growth, ARDL test.JEL Classifications: Q32, Q044DOI: https://doi.org/10.32479/ijeep.10021
Highlights
Energy demand is derived from the multiple activities we need energy to accomplish
The above results ustified the application of Autoregressive Distributed Lag (ARDL) since the variables were integrated at different levels and the result of the ARDL co-integration test is as shown in Table 3; 4.2
The long run coefficients showed that electricity consumption and petroleum consumption exhibited a positive and significant relationship with economic growth in Nigeria while coal consumption showed a negative relationship with growth though significant
Summary
Energy demand is derived from the multiple activities (economic or non-economic) we need energy to accomplish. Such activities include industrial use, house hold, and individuals, running of equipment, cars and machines. Energy is not consumed for the sake of consuming it but for another purpose (e.g. for mobility, for producing goods and services, or for obtaining a certain level of comforts, etc.) (Hartman, 1979; Stevens, 2000; Bhattacharyya, 2006). Since the consumption of energy is derived, we can use the activities where the energy goes to measure economic growth. After all economic growth depends upon the interaction of opportunities and choices. A country, or an entire region, may fail to grow either because there are no opportunities, or because choices are made that preclude opportunities being taken
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