Unbundling Socioeconomic Living Condition: Analyzing Environmental Quality Impact on Sustainable Development for Nigeria

Ohioze Wilson F., Ojo Tope J., Odior Ernest S.O. and Dauda Risikat O.S.
Additional contact information
Ohioze Wilson F.: Department of Economics, National Open University of Nigeria, Abuja.
Ojo Tope J.: Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State.
Odior Ernest S.O.: Department of Economics, University of Lagos, Akoka-Yaba, Lagos State.
Dauda Risikat O.S.: Department of Economics, University of Lagos, Akoka-Yaba, Lagos State.

Timisoara Journal of Economics and Business, 2024, vol. 17, issue 2, 139-164

Abstract: Sustainable development is a development strategy that utilizes resources in a manner that ensures their availability for future generations. The study thus, investigates the impact of environmental quality (a component of socioeconomic living conditions) on sustainable development in Nigeria. The influence of biocapacity deficit per capita (measurement for environmental quality) and other macroeconomic variables on human development index (sustainable development’s measurement) is examined using data which range from1999q1 to 2022q2. Having utilized the Autoregressive Distributed Lag framework to evaluate the short-term and the long-term equations, the result reveals that, apart from real per capita gross domestic product and capital investment, which are significant in the short run, biocapacity deficit per capita, urban population and labour force do not exhibit significant effects. However, in the long-run, biocapacity deficit per capita and labour force turned out negatively significant. Interestingly, biocapacity deficit per capita is observed to be sustainable development retarding. The key implication from the outcomes of this research is that the degraded environment retards long-term development sustainability in Nigeria. Therefore, the study recommends extensive reforestation and afforestation efforts to enhance the nation’s degraded lands, restore biodiversity, and boost carbon sequestration. However, despite the insightful findings, key macroeconomic variables like technological innovation and institutional quality that would have explained sustainable development were not factored into the study analysis.

Keywords: Sustainable Development; Environmental Quality; Biocapacity Deficit; Human Development Index; Autoregressive Distributed Lag; Macroeconomic Variables (search for similar items in EconPapers)
JEL-codes: I31 O13 Q56 R11 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:timjeb:v:17:y:2024:i:2:p:139-164:n:1002

DOI: 10.2478/tjeb-2024-0007

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