The Empirics of Per Capita Income Growth, Resources Rents and Environmental Quality in Nigeria

Aderopo Raphael Adediyan (), Uchenna Kingsley Chigozie () and Oseremen ThankGod Ehisuoria ()

Academic Journal of Economic Studies, 2020, vol. 6, issue 3, 72-80

Abstract: This paper attempts to analyze the interaction among resources rents, per capita income growth and the environmental quality in Nigeria. Using annual time-series data between 1986 and 2018, the paper adopted the SVAR approach. The study suggests that per capita income growth (PCY) has a long-term negative and short-term positive impact on environmental quality (CO2). Also, natural resources rent (NRR) has a shortterm negative and positive impact, with roughly the same length of time, on the PCY, suggesting that its overall impact over the simulated period may be neutral. Nonetheless, the study further suggests that the dominant source of variation in PCY came from own shock and shocks in the CO2. Additionally, while NRR had long term negative and short term positive impact on CO2, the dominant source of movement in CO2 asides own shock came from a perturbation in PCY. In conclusion, among others, policies designed to expand resources rents may not help a lot to promote per capita income growth and could contribute to a further deterioration of the state of the environment over time in Nigeria.

Keywords: Environmental Quality; Per Capita Income Growth; Natural Resources Rent; SVAR (search for similar items in EconPapers)
JEL-codes: C01 O1 O11 O44 Q01 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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