Skip to main content

Advertisement

SpringerLink
Log in

Environmental degradation and economic growth: time-varying and nonlinear evidence from Nigeria

  • Published:
Environment, Development and Sustainability Aims and scope Submit manuscript

Abstract

The current study investigates the causal relations between CO2 emissions and the growth of Nigeria's economy, a topic of significant interest for the relevant authorities that has yet to be comprehensively examined. We test both the nonlinear and time-varying nature of the variables' relationships to provide effective and applicable policies. Unlike the linear method's lack of causal evidence, both nonlinear and time-varying Granger causality tests indicate the presence of dual causation between the variables. This suggests that appropriate and cost-effective environmental policies need to be adopted in Nigeria to prevent sustainable economic growth from being jeopardized while addressing environmental concerns. In this regard, it is recommended that clean energy resources make a greater contribution to the country’s energy paradigm as a viable solution. This will lead to higher energy efficiency, which will help the country to maintain the economy's growth level in the ideal zone and mitigate environmental challenges.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Notes

  1. Available at https://ourworldindata.org/

References

  • Abbas, S., Khan, K., & Khan, A. A. (2016). REED plus and their impact on green economy development: implication for the sustainable forest development, Swat Valley, HKH region Khyber PakhtunKhwa. Pakistan. Science International (lahore), 28(5), 4657–4664.

    Google Scholar 

  • Abbas, S., Shirazi, S. A., & Qureshi, S. (2018a). SWOT analysis for socio-ecological landscape variation as a precursor to the management of the mountainous Kanshi watershed, Salt Range of Pakistan. International Journal of Sustainable Development & World Ecology, 25(4), 351–361.

    Article  Google Scholar 

  • Abbas, S., Hussain, M. S., Im, S., Lee, S., & Shirazi, S. A. (2018b). Urban growth and its effect on temperature trends of Lahore City. Pakistan. 기후연구, 13(3), 231–245.

    Google Scholar 

  • Abbas, S., Kousar, S., Yaseen, M., Mayo, Z. A., Zainab, M., Mahmood, M. J., & Raza, H. (2020a). Impact assessment of socioeconomic factors on dimensions of environmental degradation in Pakistan. SN Applied Sciences, 2(3), 1–16.

    Article  Google Scholar 

  • Abbas, S., Shirazi, S. A., Hussain, M. S., Yaseen, M., Shakarullah, K., Wahla, S. S., & Khurshid, M. (2020b). Impact of climate change on forest cover: Implications for carbon stock assessment and sustainable development in HKH region-Pakistan. Pakistan Vision, 21(1), 66.

    Google Scholar 

  • Abbas, S., Kousar, S., & Pervaiz, A. (2021). Effects of energy consumption and ecological footprint on CO 2 emissions: an empirical evidence from Pakistan. Environment, Development and Sustainability, 1, 1–18.

    Google Scholar 

  • Akpan, G. E., & Akpan, U. F. (2012). Electricity consumption, carbon emissions and economic growth in Nigeria. International Journal of Energy Economics and Policy, 2(4), 292.

    Google Scholar 

  • Akanbi, B. E., Adagunodo, M., & Satope, B. F. (2014). Climate change, human development and economic growth in Nigeria. International Journal of Humanities and Social Science, 4(13), 222–228.

    Google Scholar 

  • Akpodiogaga-a, P., & Odjugo, O. (2010). General overview of climate change impacts in Nigeria. Journal of Human Ecology, 29(1), 47–55.

    Article  Google Scholar 

  • Andrews, D. W. (1993). Tests for parameter instability and structural change with unknown change point. Econometrica: Journal of the Econometric Society, 61: 821-856.

  • Andrews, D. W., & Ploberger, W. (1994). Optimal tests when a nuisance parameter is present only under the alternative. Econometrica: Journal of the Econometric Society, 62, 1383–1414.

  • Ayuba, H. K., Maryah, U. M., & Gwary, D. M. (2007). Climate change impact on plant species composition in six semi-arid rangelands of Northern Nigeria. Nigerian Geographical Journal, 5(1), 35–42.

    Google Scholar 

  • Baek, E., & Brock, W. (1992). A general test for nonlinear Granger causality: Bivariate model. Iowa State University and University of Wisconsin at Madison Working Paper

  • Bahramian, P., & Saliminezhad, A. (2020). On the relationship between export and economic growth: A nonparametric causality-in-quantiles approach for Turkey. The Journal of International Trade & Economic Development, 29(1), 131–145.

    Article  Google Scholar 

  • Beyioku J. (2016) Climate change in Nigeria: A brief review of causes, effects and solution https://fmic.gov.ng/climate-change-nigeria-brief-review-causes-effects-solution/

  • Bouznit, M., & Pablo-Romero, M. D. P. (2016). CO2 emission and economic growth in Algeria. Energy Policy, 96, 93–104.

    Article  Google Scholar 

  • Broock, W. A., Scheinkman, J. A., Dechert, W. D., & LeBaron, B. (1996). A test for independence based on the correlation dimension. Econometric Reviews, 15(3), 197–235.

    Article  Google Scholar 

  • Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366a), 427–431.

    Article  Google Scholar 

  • Diks, C., & Panchenko, V. (2006). A new statistic and practical guidelines for nonparametric Granger causality testing. Journal of Economic Dynamics and Control, 30(9–10), 1647–1669.

    Article  Google Scholar 

  • Elliott, G., Rothenberg, T. J., & Stock, J. H. (1996). Efficient tests for an autoregressive unit root. Econometrica, 64, 813–836.

    Article  Google Scholar 

  • Granger, C. J."(1969) Investigating causal relationships by econometrics models and cross spectral methods." Econometrica, 37, 425–435.

  • Hacker, R. S., & Hatemi-J, A. (2006). Tests for causality between integrated variables using asymptotic and bootstrap distributions: Theory and application. Applied Economics, 38(13), 1489–1500.

    Article  Google Scholar 

  • Hiemstra, C., & Jones, J. D. (1994). Testing for linear and nonlinear Granger causality in stock-price volume relation. Journal of Finance, 49, 1639–1664.

    Google Scholar 

  • Ikhuoria, I. A., & Odjugo, P. A. O. (2003). The impact of climate change and anthropogenic factors on desertification in the semi-arid region of Nigeria.

  • Jagtap S (2007). Managing vulnerability to extreme weather and climate events: implications for agriculture and food security in africa. proceedings of the international conference on climate change and economic sustainability held at Nnamdi Azikiwe University, Enugu, Nigeria. 12–14 June 2007.

  • Kuznets, S. (1955). Economic growth and income inequality. The American Economic Review, 49, 1–28.

    Google Scholar 

  • Kwiatkowski, D., Phillips, P. C. B., Schmidt, P., & Shin, Y. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root: How sure are we that economic time series have a unit root? Journal of Economics, 54, 159–178.

    Article  Google Scholar 

  • Mardani, A., Streimikiene, D., Cavallaro, F., Loganathan, N and Khoshnoudi, M (2018) Carbon dioxide (CO2) emissions and economic growth: A systematic review of two decades of research from 1995 to 2017 Science of the Total Environment journal homepage: doi.org/https://doi.org/10.1016/j.scitotenv.2018.08.229 Elsevier BV.

  • McMicheal A. J, Butler C.D and Dixon J (2015) Climate change, food systems and population health risks in their eco-social context. Public Health journal homepage: www.elsevier.com/puhe, p u b l i c health 1 2 9 (2 0 1 5) 1 3 6 1e1 3 6 8

  • Muftau, O., Iyoboyi, M., & Ademola, A. S. (2014). An empirical analysis of the relationship between CO2 emission and economic growth in West Africa. American Journal of Economics, 4(1), 1–17.

    Google Scholar 

  • Nwafor, JC (2007). Global climate change: The driver of multiple causes of flood intensity in Sub-Saharan Africa. Paper presented at the International Conference on Climate Change and Economic Sustainability held at Nnamdi Azikiwe University, Enugu, Nigeria, 12–14 June 2007.

  • Phillips, P. C., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335–346.

    Article  Google Scholar 

  • Pindyck, R. S. (2011). Fat tails, thin tails, and climate change policy. Review of Environmental Economics and Policy, 5(2), 258–274.

    Article  Google Scholar 

  • Rafindadi, A. A. (2016). Does the need for economic growth influence energy consumption and CO2 emissions in Nigeria? Evidence from the innovation accounting test. Renewable and Sustainable Energy Reviews, 62, 1209–1225.

    Article  Google Scholar 

  • Rossi, B., & Wang, Y. (2019). Vector autoregressive-based Granger causality test in the presence of instabilities. The Stata Journal, 19(4), 883–899.

    Article  Google Scholar 

  • Saliminezhad, A., & Lisaniler, F. G. (2018). Validity of unbalanced growth theory and sectoral investment priorities in Indonesia: Application of feature ranking methods. The Journal of International Trade Economic Development, 27(5), 521–540.

    Article  Google Scholar 

  • Shahbaz, M., Zakaria, M., Shahzad, S. J. H., & Mahalik, M. K. (2018). The energy consumption and economic growth nexus in top ten energy-consuming countries: Fresh evidence from using the quantile-on-quantile approach. Energy Economics, 71, 282–301.

    Article  Google Scholar 

  • Stern, D.I., 2004. Environmental kuznets curve. encyclopaedia of energy vol. 3. Elsevier, Amsterdam.

  • Sulaiman, C. (2014). The causality between energy consumption, CO2 emissions and economic growth in Nigeria: An application of Toda and Yamamoto Procedure. Advances in Natural Applied Sciences, 8(1), 75–81.

    Google Scholar 

  • Sulaiman, C., & Abdul-Rahim, A. S. (2018). Population growth and CO2 emission in Nigeria: A recursive ARDL approach. SAGE Open, 8(2), 2158244018765916.

    Article  Google Scholar 

  • Toda, H. Y., Yamamoto, T. J. J., & o. e. . (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1–2), 225–250.

    Article  Google Scholar 

  • Perron, P. (2006). Dealing with structural breaks. Palgrave Handbook of Econometrics, 1(2), 278–352.

    Google Scholar 

  • Purcel, A. A. (2020). New insights into the environmental Kuznets curve hypothesis in developing and transition economies: A literature survey. Environmental Economics and Policy Studies, 22, 1–47.

    Article  Google Scholar 

  • Wade, K., Jennings, M. (2015). The impact of climate change on the global economy. Schroders Talking Point.

  • Zhao, X., Zhang, X., Li, N., Shao, S., & Geng, Y. (2017). Decoupling economic growth from carbon dioxide emissions in China: A sectoral factor decomposition analysis. Journal of Cleaner Production, 142, 3500–3516.

    Article  CAS  Google Scholar 

  • Zivot, E., & Andrews, D. W. K. (1992). Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. Journal of Business & Economic Statistics, 10(3), 251–270.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, Near East University, Nicosia/TRNC, Cyprus

    Andisheh Saliminezhad, Huseyin Ozdeser & Dahiru Alhaji Bala Birnintsaba

Authors
  1. Andisheh Saliminezhad
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Huseyin Ozdeser
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Dahiru Alhaji Bala Birnintsaba
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Andisheh Saliminezhad.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Saliminezhad, A., Ozdeser, H. & Birnintsaba, D.A.B. Environmental degradation and economic growth: time-varying and nonlinear evidence from Nigeria. Environ Dev Sustain 24, 6288–6301 (2022). https://doi.org/10.1007/s10668-021-01702-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10668-021-01702-8

Keywords

JEL Classifications

Search

Navigation