TOTAL AND DISTRIBUTIVE IMPACT OF FINAL SECTORAL DEMAND ON CARBON DIOXIDE EQUIVALENT IN NIGERIA

Abstract

This paper analyzed the percentage rise in final (sectoral) demand undergone by the whole economy in reaction to a 1% rise of the corresponding sector and the percentage rise corresponding to the apportionment of direct sectoral demand and its resultant effect on CO2-eq emissions in Nigeria. The study adopted a longitudinal design, and the most recent input-output (I-O) table was obtained from secondary sources (Eurostat database). Results revealed increases in CO2-eq emissions from the fishing, post and telecommunication, wood and paper, petroleum, chemical and non-metallic mineral products, metal products, electricity, gas and water, wholesale trade, and public administration sectors with a total contribution of 0.04095, 0.04095, 0.04089, 0.04088, 0.04086, 0.04089, 0.04088 and 0.04087 percent respectively, while sectors that contributed the highest in terms of the distribution of direct sectoral emissions were fishing, mining/quarrying and textile/wearing apparel accounting for about 0.04101, 0.04109 and 0.04111 percent respectively. That implies a 1% increase in final demand was increasing in the corresponding sector. Based on these results, the study identified sectors that contribute the highest in terms of the distribution of direct sectoral emission and sectors that account for the highest total increase in energy consumed in the country, thus contributing to the current debate in the literature. However, emission mitigation options proposed by the IPCC report should be considered an important option in curbing these emissions in Nigeria.