Urbanization, Energy Use, and Carbon Dioxide Emissions Linkage in Nigeria: Evidence from Auto-Regressive Distributed Lag Bound Approach

Authors

  • Sunday Mauton Ayodamola Posu
  • Oladapo Fapetu
  • Matthew Abiodun Dada
  • Olutunji Timothy Ojo
  • Ademola Israel Adeniyi

Keywords:

Greenhouse gases, Fossil fuel, Urban environmental transition theory, Renewable energy, Government regulatory quality

Abstract

Major energy-intensity activities with high volume of carbon dioxide emissions (CO2E) take
place in urban areas. This study employs a dataset for the period 1999-2022 on variables
including urban population growth, energy use, industrialization, trade openness, and
regulatory quality to investigate the empirical relationships among the variables with CO2E
in Nigeria. The study adopts the ARDL bound test approach and develops models on energy
use and CO2E separately to reveal the intimate interactions and differing effects of the
variables in the models. The short-run effects of urbanization and energy use on CO2E are
both significantly negative, but the response from urbanization is elastic while it is inelastic
from energy use. The long-run results reveal urbanization having a significantly positive
impact on energy use, but a significantly negative effect on CO2 emissions. Energy use is
highly elastic to urbanization while CO2 emissions depicts low elasticity to urbanization.
Renewable energy improves the environment in Nigeria. The non-linear effects of energy use
on CO2E reveal a U-shaped relationship between CO2 emissions and energy use.
Urbanization indirectly deteriorates the environment through energy use in Nigeria. The
study recommends intensified investment in renewable energy and regulatory measures to
improve on the efficiency of the energy sector vis-à-vis adoption of green technology for mass
public transportation system as a check on the numerous private provisions that pollute the
environment.

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Published

2024-06-26