Abstract

This study seeks to explore the impact of economic openness on environmental sustainability in Nigeria. Using time series data spanning 1981-2021 sourced from World Development Indicators (WDI) and Central Bank of Nigeria Statistical Bulletin, the study employed the Autoregressive Distributed Lag (ARDL) method of regression analysis to analyze the relationship between environmental sustainability (methane as the measure of sustainability or environmental quality) and economic openness (GDP, FDI and Degree of openness), the result indicates that in the long run, the relationship between the dependent variable and the independent variables are positive but statistical insignificant, whereas, the result further reveals that all the variables except FDI have a short run negative impact on the environment but the impacts are statistically insignificant. It was therefore recommended among others that polices that makes investment attractive to investors as well as improve international trade should be encouraged. The novelty of this study lies in the fact that, it is the first single-country study to use CH4 (methane) as a measure of environmental quality for the case of Nigeria.

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