Deconstructing the Energy Trilemma Through Sustainable Estate Management and Disaster Risk Reduction in Urban Communities of Rivers State, Nigeria
Keywords:
Decoupling, Economic growth, Environmental quality, CO2, Water qualityAbstract
This study examined the effect of decoupling economic growth strategy on environmental quality in Nigeria. Data were collected from the Central Bank of Nigeria (CBN) statistical bulletin and World Bank indicators. This study adopted the ordinary least squares (OLS) method-based Autoregressive Distributed Lag (ARDL) model to estimate the effects of decoupling economic growth on environmental quality. The results of the ARDL estimates revealed that total decoupling index (TDI), fossil fuel energy consumption (FEC), renewable energy consumption (REC) and natural resource depletion (NRD) were all rightly signed. This indicates that in the long run, fossil fuel energy consumption (FEC) and natural resource depletion (NRD) reduce environmental quality (EQL) in Nigeria. On the other hand, total decoupling index (TDI) and renewable energy consumption (REC) have positive and significant effects on environmental quality. The policy implication is that there is a need for an energy transition from fossil fuels to renewable energy that is environmentally friendly. Also, efficient use of energy could increase economic growth and improve environmental quality. Based on the conclusion and findings of the study, it is recommended that the government should strictly enforce the environmental laws and regulations in Nigeria. This will help to mitigate the environmental effects of economic growth on the environment. There is a need for an energy transition from fossil fuels to renewable energy that is environmentally friendly. A shift away from intensive use of fossil fuels to renewable energy sources will encourage decoupling, economic growth that increases economic growth while minimising environmental damage. This transition will enhance environmental quality in Nigeria.
References
Aguegboh, S.E., & Madueme, S.I. (2014). Energy consumption and economic growth: The Nigerian Case (1980-2010). In A. Adenikinju, A. Iwayemi & W. Iledare (Eds.), Energy Resource Management in a Federal System: Challenges, Constraints and Strategies. Proceedings of the 6th Annual conference of the Nigerian Association for Energy Economics / the International Association of Energy Economics, 305-332. Lagos, Nigeria.
Akomolafe, K. J., Danladi, J. D., & Oseni, Y. R. (2015). Trade openness, economic growth, and environmental concern in Nigeria. International Journal of African and Asian Studies. 13(1), 163-171.
Alehile, K. S., Yakubu, A., & Ebeh, J. E. (2024). Examining the linkages between environmental quality and sustainable development in Nigeria. Chinese Journal of Urban and Environmental Studies, 12(4), 1-20. https://doi.org/10.1142/S2345748124500234
Ayoola, T. J. (2011). Gas flaring and its implication for environmental accounting in Nigeria. Journal of Sustainable Development. 4(5): 244-250.
Chuku, A., & Akpan, U. F. (2011). Economic growth and environmental degradation in Nigeria: Beyond the Environmental Kuznets Curve. MPRA Paper No. 31241
Chuku, C.A., & Ndifreke, S.R. (2012). Energy consumption, trade, the environment and growth in Nigeria: A combined Simultaneous Approach. In A. Adenikinju, A. Iwayemi & W. Iledare (Eds.), Green Energy and Energy Security: Options for Africa. Proceedings of the 4th Annual conference of the Nigerian Association of Energy Economics/ the International Association of Energy Economics, 195-211. Abuja, Nigeria.
Ghanem, S. K. (2018). The relationship between population and the environment and its impact on sustainable development in Egypt using a multi-equation model. Environment, Development and Sustainability, 20: 305–342. Gibbons, R. S. (1992). Game Theory for Applied Economists. Princeton University.
Grossman, G.M., & Krueger, A.B. (1995). Economic growth and the environment. Quartely Journal of Economics, 110(2): 353-377. Gujarati, D. N. (2013). Basic Econometrics. African value edition. Mcgraw Hill. Honnicke, P. (2014). Decoupling economic growth from resource consumption: A transformation strategy with manifold socio-economic benefits for India and Germany. Deutsches Gesellschaft.
Kneese, A. V., Ayres, R. U., & D’Arge, R. C. (1970). Economics and the Environment: A materials balance approach. Washington DC: Resources for the future.
Nnaji, C.E., Chukwu, J.O., & Uzoma, C.C. (2013). An econometric study of co2 emissions, energy consumption, foreign trade and economic growth in Nigeria. In A. Adenikinju, A. Iwayemi & W. Iledare (Eds.), Energy Technology and Infrastructure for Development. Proceedings of the 5th Annual conference of the Nigerian Association of Energy Economics/ the International Association of Energy Economics, 489-508. Abuja, Nigeria.
NNPC, (2017). Nigeria National Petroleum Corporation. Annual Report and Statistics.
Olayode, A. (2019). Decoupling growth from co2 emission in selected ECOWAS countries. Nigerian Journal of Economic and Social Studies, 61(3), 437-466.
OPEC, (2015). Organization of Petroleum Exporting Countries. Annual Reports. Pesaran, M. H.; Shin, Y. A.; Smith, R. J. (2001). Bound testing approach to analysis of level relationship. Journal of Applied Econometrics, 16(1), 289-326.
Rasool, Y, Jianguo, D., & Kishwar, A. (2024). Exploring the linkage between globalization and environmental degradation: A disaggregate analysis of Indonesia. Environment, Development and Sustainability, 26: 16887–16915.
Salami, A. T. (2021). Environment and sustainable development in Nigeria. Journal of Sustainable Development in Africa, 23(3): 34–52.
Thomas, J. M., & Collan, (2007). Environmental Economics: Applications, Policy and Theory. Canada, Thompson South-Western.
