Trade, transportation and environment nexus in Nigeria

  • Adedayo Emmanuel Longe Center for Petroleum, Energy Economics and Law, University of Ibadan, Ibadan, Oyo State, Nigeria
  • Kayode Daniel Ajulo Department of Economics, Olabisi Onabanjo University,Ago-Iwoye, Ogun State, Nigeria
  • Olawunmi Omitogun Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria
  • Emmanuel Olajide Adebayo Department of Economics, Bowen University, Iwo, Osun State, Nigeria
Keywords: ARDL, CO2, transportation, trade,

Abstract


This study investigates trade, transportation and environment nexus
in Nigeria. The main objective of the study is to incorporate transportation
activities and trade into the EKC model seeing transportation
as an important factor that determines environmental degradation in
Nigeria. Annual data from 1984 to 2014 is used in the study, whereas
ARDL estimation technique was adopted to analyse the data. The results
show that all the variables have a positive significant correlation
with carbon emissions in Nigeria except trade that was negative and
insignificant. According to ARDL estimates,trade, import transport
services and GDP per capita have positive impact on CO2 emissions in
the long-run while in the short-run, the result shows that trade, GDP
per capita, energy consumption and transport services are capable of
correcting about 74% deviation of carbon emissions back to long-run
equilibrium. Based on the findings, drawn conclusion stipulates that
energy consumption and trade are the main determinant factors that
contribute to carbon emission and appropriate attention should be
given to energy consumption by considering alternative efficient energy
sources to curb the increasing emission in Nigeria.

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Published
2018/10/16
Section
Original Scientific Paper