Citation:

Ihim Uchechukwu James, Dr. Sabiu Sani B. "Impact of Energy Consumption on Environmental Pollution and Economic Growth in Nigeria" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 653-662, 2023.

Abstract:

Energy consumption drives economic growth and development in every country, affecting industrial, transportation, residential, and commercial activity. The contradictory link between energy use, environmental damage, and economic development presents difficulties and possibilities for the nation. Countries' energy sources and consumption habits affect their environmental sustainability and economic growth. Nigeria, Africa's most populous country and fastest-growing economy, is facing the repercussions of its energy consumption decisions. This article discusses the intricate relationship between Nigeria's energy use, pollution, and economic growth, highlighting its challenges and future opportunities. Using the ordinary least squares approach, regression analysis was performed on these data at the 5% level of significance. Findings showed that whereas the use of fossil fuels has a negative and significant influence on carbon emissions, the use of electricity has a positive and large impact on both economic growth and carbon emissions. These findings support the hypothesis that there is a statistically significant association between Nigeria's consumption of fossil fuels, power, GDP growth rate, and carbon emission rate. Nigeria must therefore investigate and invest in alternate and cleaner energy sources to lessen its reliance on fossil fuels in order to boost economic growth. Also, promoting energy-efficient technologies and practices in electricity consumption can help lower carbon emissions. Policymakers should focus on promoting green and sustainable economic growth to mitigate carbon emissions, strengthening and enforcing environmental regulations related to carbon emissions can help control and reduce the impact of economic activities on the environment.

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Keywords:

Carbon Emission, Fossil-Fuel Consumption, Electricity Consumption, Economic Growth.