EconPapers    
Economics at your fingertips  
 

Modeling the determinants of renewable energy consumption in Nigeria: Evidence from Autoregressive Distributed Lagged in error correction approach

Oluwatoyin Abidemi Somoye, Huseyin Ozdeser and Mehdi Seraj

Renewable Energy, 2022, vol. 190, issue C, 606-616

Abstract: Different solutions have been designed to solve the climate change impacts. One recommended solution is to use renewable energy sources to power up economic activities. Renewable energy lowers the carbon footprint, generates no emissions and reduces harmful air pollutants. This research investigates the determinants of renewable energy consumption in Nigeria from 1960 to 2019 using the Parameterization Autoregressive Distributed Lagged in Error Correction approach. Nigeria is used as a case study because of its position and role in African and global economies. In the long-run, gross domestic product and financial development promote renewable energy consumption, and fossil fuel energy consumption harms renewable energy consumption. As gross domestic product increases by 1%, renewable energy consumption increases by 0.11%. A 1% increase in fossil fuel energy consumption decreases renewable energy consumption by 0.0008%. As financial development increases by 1%, renewable energy consumption increases by 0.026%. In the short-run, trade openness has a negative impact on renewable energy consumption. A 1% increase in trade openness decreases renewable energy consumption by 0.005%. Therefore, it is suggested that the Nigerian government continue to create policies that increase the Nigerian economy's productive capacity and regulate the importation of fossil fuel-related goods in favor of renewable energy products.

Keywords: Renewable energy; Fossil fuel; Financial development; Trade openness; Nigeria (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S096014812200427X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:190:y:2022:i:c:p:606-616

DOI: 10.1016/j.renene.2022.03.143

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).

 
Page updated 2024-12-28
Handle: RePEc:eee:renene:v:190:y:2022:i:c:p:606-616