Application of Decoupling Approach to Evaluate Electricity Consumption, Agriculture, GDP, Crude Oil Production, and CO 2 Emission Nexus in Support of Economic Instrument in Nigeria

Mathy Sane, Miroslav Hajek, Joseph Phiri, Jamilu Babangida and Chukwudi Nwaogu
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Mathy Sane: Faculty of Forestry and Wood Sciences, Czech University of Life Sciences Prague, Kamýcká 129, 16 500 Praha-Suchdol, Czech Republic
Miroslav Hajek: Faculty of Forestry and Wood Sciences, Czech University of Life Sciences Prague, Kamýcká 129, 16 500 Praha-Suchdol, Czech Republic
Joseph Phiri: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 16 500 Praha-Suchdol, Czech Republic
Chukwudi Nwaogu: Department of Environmental Management, School of Environmental Sciences, Federal University of Technology, Owerri, P.M.B. 1526, Owerri 460114, Nigeria

Sustainability, 2022, vol. 14, issue 6, 1-15

Abstract: The paper appraised the nexus between electricity consumption, agriculture, GDP, oil production, and carbon dioxide (CO 2 ) emissions in Nigeria using a decoupling approach. The result showed that agriculture, electricity, and GDP were predictive variables for CO 2 emissions in the Granger causality analysis. The relationship between GDP and CO 2 emissions also indicated that the amount of CO 2 released tends to rise as the economy’s output and industrial sectors grow, making GDP and CO 2 emissions increasingly relevant indicators as a driver of CO 2 emissions. Modern agriculture is reliant on large-scale use of fossil fuels and fertilizer production, as well as GHG emissions from crop and livestock production. However, increasing per capita real production can help to enhance quality of the environment, and speed up the uptake of renewable energy which can consequently help to ameliorate global warming. As a result of this study’s policy implications, policies in the agricultural sector that could combat CO 2 emissions, including deforestation, land clearing, fertilization with highly environmentally destructive chemicals, neglected integration of agroforestry, and social forestry practices, can help reduce CO 2 emissions in the agricultural sector. In addition, the study recommends that the financial markets’ monetary policy should regulate the GDP to charges to compensate for their various sectors’ contributions to CO 2 emissions. This investigation might help policymakers in Nigeria to define the CO 2 emission monetary and fiscal strategies. In addition, more alternative energy sources such as biofuels, hydropower, solar energy, and other renewable resources should be embraced in Nigeria as sustainable substitutes for fossil fuels.

Keywords: climate change; renewable energy; non-renewable energy; environmental-economic factors; decoupling method; Nigeria (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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