The impact of renewable energy consumption on sectoral environmental quality in Nigeria

Abstract

This paper examines the impact of renewable energy consumption on sectoral environmental quality in the presence of government effectiveness in Nigeria. A regression analysis was used to estimate a dataset for the period of 1989–2019. Sectoral environmental quality indicators and sectoral output were considered from the agricultural sector, manufacturing and construction sector, transportation sector, oil sector, residential buildings and commercial and public services sector, other sectors and per capita indicator. The result shows that renewable energy consumption does not have a favourable impact on the environmental quality of the agricultural sector, manufacturing and construction sector and oil sector. However, renewable energy consumption has a favourable impact on the environmental quality of the transportation sector, residential buildings, commercial and public services sector. Nevertheless, renewable energy consumption has a neutral impact on the environmental quality of other sectors. Policy implications were drawn after considering the expected value of sectoral environmental quality indicators with significant elasticities.