Energy Production and Environmental Quality in Nigeria

Abstract

This study investigated the impact of energy production on environmental quality in Nigeria, proxied by carbon dioxide emission, over the period 1990 to 2025. Energy production was proxied by total energy production, renewable energy consumption, electricity generation, fossil fuel energy production, and urbanization. The study made use of annual time series data sourced mainly from the World Bank World Development Indicators (WDI) and the International Energy Agency (IEA). The Augmented Dickey-Fuller (ADF) unit root test, the ARDL bounds cointegration test, and the Autoregressive Distributed Lag (ARDL) model were employed as the data analysis techniques. The findings revealed that energy production is cointegrated with environmental quality in the long run, with a bounds test F-statistic of 7.513330 exceeding the upper bound at all conventional significance levels. Total energy production had a negative and statistically insignificant effect on carbon dioxide emission in the long run. Renewable energy consumption had a negative and statistically significant effect on carbon dioxide emission in the long run. Electricity generation had a negative and statistically insignificant effect on carbon dioxide emission in the long run. Fossil fuel energy production had a negative and statistically significant effect on carbon dioxide emission in the long run. Urbanization had a negative and statistically significant effect on carbon dioxide emission in the long run. The study concluded that energy production has a substantial impact on environmental quality in Nigeria. The study recommended, among other measures, that the Federal Government of Nigeria, through the Federal Ministry of Power and the Energy Commission of Nigeria, should intensify investment in renewable energy infrastructure such as solar, wind, and hydroelectric power projects.