Abstract
Renewable energy (RE) has been talked about for more than 30 years while there is an increased use of fossil fuels accompanied by subsequent negative environmental impacts and supply decline. This study explores the linkages between renewable energy and energy efficiency in ensuring an eco-friendly environment in Nigeria. Four independent variables (economic growth, fossil fuel energy consumption, renewable energy consumption, and population) were examined using time series data from 1981 to 2013 with pollution (CO2) emission as an indicator (dependent variable) for environmental degradation. The study also emanates with the view of proffering policies on how the use of renewable energy resulting in energy efficiency instead of the traditional fossil fuel can be used to sustain the environment. The autoregressive distributed lag (ARDL) bounds testing approach to co-integration and the vector error correction model (VECM)-Granger causality test were applied to estimate both long- and short-run parameters as well as the direction of causation. The results from the analysis confirmed the existence of co-integration among the variables both in long- and short-run paths. The increasing negative impact of renewable energy consumption on environmental degradation validates the renewable energy-environmental quality nexus. The increased pollution emission due to fossil fuel consumption calls for a shift in the energy consumption policy from the traditional fossil fuel to renewable energy. However, an economic growth impact on environmental degradation in the long run invalidates the environmental Kuznets curve (EKC) hypothesis for CO2 emission in Nigeria. The adoption of renewable and alternate energy resources will support sustainable growth with reduced adverse environmental impacts and ensure an eco-friendly environment in Nigeria.
Highlights
Renewable energy (RE) has been talked about for more than 30 years while there is an increased use of fossil fuels accompanied by subsequent negative environmental impacts and supply decline
The optimal lag order for Augmented Dickey-Fuller (ADF) test is determined by Akaike’s information criterion (AIC), while the bandwidths for PP and KPSS tests are determined by using the Newey-West Bartlett kernel (the unit root test indicates that all the variables are integrated or stationary at the first difference, I(1) except InRENt and GDPt which are stationary at levels) *Significance at 1 % level; **significance at 5 % level; ***significance at 10 % level to capture the dynamic relationship so that the AIC statistic could be used to choose the best autoregressive distributed lag (ARDL) models
This study explores the nexus between the pollution emission (CO2), energy consumption, and the economic growth linkages using population as an additional explanatory variable
Summary
Renewable energy (RE) has been talked about for more than 30 years while there is an increased use of fossil fuels accompanied by subsequent negative environmental impacts and supply decline. Four independent variables (economic growth, fossil fuel energy consumption, renewable energy consumption, and population) were examined using time series data from 1981 to 2013 with pollution (CO2) emission as an indicator (dependent variable) for environmental degradation. The study emanates with the view of proffering policies on how the use of renewable energy resulting in energy efficiency instead of the traditional fossil fuel can be used to sustain the environment. Renewable energy (RE) has been talked about for more than 30 years while fossil fuels have increased in use and declined in supply. Setting targets for new renewable energy (defined as modern biomass, solar, the wind, and small-scale hydro, geothermal, and marine energy) as well as reducing perverse and
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