Impact of Renewable Energy Consumption, Forest Area, and Economic Growth on CO₂ Emissions in Nigeria

Abstract

This study investigated the impact of renewable energy consumption, forest area, and economic growth on co₂ emissions in Nigeria, using renewable energy consumption (REC), forest area as a percentage of land area (FOA), and GDP per capita (GDPC) as independent variables, while CO2 emissions served as the dependent variable. Time series data for these variables were sourced from the World Development Indicators (WDI) for the period 1990 to 2023. Analytical methods employed include unit root tests, Engle-Granger cointegration, Error Correction Model analysis, and residual diagnostic tests. The Augmented Dickey-Fuller (ADF) unit root test results indicate that all variables were integrated of order one, I(1). The ECM results established a statistically significant and negative relationship between REC and CO₂ emissions; Furthermore, the analysis revealed a positive but statistically not significant relationship between FOA and CO₂ emissions. Additionally, GDP per capita showed a positive but statistically not significant effect on CO₂ emissions. Based on these findings, the study recommended among others that policymakers should implement targeted subsidies for renewable energy technologies, offer regulatory incentives to clean energy producers, and invest in infrastructure supporting decentralized renewable systems, particularly solar and biomass that align with Nigeria’s climatic and economic conditions