Relationship between FDI, Renewable energy, Inflation and carbon emission in Nigeria

Abstract

Global sustainability is still severely hampered by the rising CO2 concentration, especially in developing nations like Nigeria. Nigeria faces difficulties in striking a balance between EG and environmental sustainability because of its abundance of natural resources and rapid economic growth. Sequel to this, this study examines connections amid renewable energy, inflation and CO2 in Nigeria. The study used ARDL methods over the period of 1990-2021 utilizing time series data from World Development Indicator (WDI, 2022). The findings indicate that long-run equilibrium estimates verify that while RE considerably reduces environmental degradation, GDP growth, FDI, and TR continue to put positive pressure on CO2 emissions. From a policy perspective, the study shows that GDPC and environmental sustainability may coexist under the direction of cogent frameworks that incorporate energy, trade, and investment initiatives. Promoting green FDI in energy-efficient industries and renewable technology can boost growth and lower emissions. Increasing TR in accordance with global environmental standards promotes the spread of cleaner industrial techniques and technical spillovers.