THE RELATIONSHIP BETWEEN CARBON FOOTPRINTS AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS
1 Department of Actuarial Science & Insurance, University of Benin, Nigeria
2 Department of Finance, Faculty of Management Science, University of Benin
* Corresponding author: shehutijaniumoru@journal.aan.org.ng
2 Department of Finance, Faculty of Management Science, University of Benin
* Corresponding author: shehutijaniumoru@journal.aan.org.ng
Abstract
This study investigated the impact of carbon emissions on Nigeria's economic growth from 1990 to 2022. The research focused on key variables including carbon dioxide (CO2), energy consumption, methane emissions (NH4), and inflation rate. Using the Fully Modified Ordinary Least Squares (FMOLS) method, the analysis revealed that CO2 emissions have a significant positive effect on economic growth, indicating that increased emissions may be associated with higher economic activity. Conversely, methane emissions negatively impact growth, highlighting environmental concerns. Energy consumption showed a weak positive relationship, while inflation rate was found to be significantly and negatively related to economic growth. Based on these findings, the study recommends implementing targeted methane reduction strategies, such as improving livestock feed and animal health, to reduce methane production. These measures can help mitigate the adverse effects of methane emissions on Nigeria's economy while promoting sustainable development.
Keywords
Carbon footprint
Carbon emission
Economic growth
Greenhouse gas
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How to Cite
Umoru, S. T., & Osaigbovo, I. B. (2025). THE RELATIONSHIP BETWEEN CARBON FOOTPRINTS AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS. Nigerian Actuarial Journal, 2(1), 46-54.
S. T. Umoru, and I. B. Osaigbovo, "THE RELATIONSHIP BETWEEN CARBON FOOTPRINTS AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS," Nigerian Actuarial Journal, vol. 2, no. 1, pp. 46-54, April 2025.
