Renewable and Non-Renewable Energy Consumption and Economic Growth- A Case of Nigeria

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 1

Year of Publication : 2020

Authors : Adaora Edna Uzokwe , Isreal Onyije

10.14445/23939125/IJEMS-V7I1P101

How to Cite?

Adaora Edna Uzokwe , Isreal Onyije, "Renewable and Non-Renewable Energy Consumption and Economic Growth- A Case of Nigeria," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 1, pp. 1-8, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I1P101

Abstract:

The study examines the relationship between renewable and non-renewable energy consumption and economic growth in Nigeria from 1984 to 2015, deploying the Autoregressive distributive lag model (ARDL) approach and the Vector autoregressive (VAR), the Granger Causality test was estimated and confirmed with the Wald test. The overall findings suggest the absence of causality, which supports the neutral hypothesis and the presence of a positive relationship between non-renewable energy consumption (NREC), renewable energy consumption (REC), and economic growth (GDP), both in the short run and long run. The study indicates that NREC and REC significantly stimulate economic growth in Nigeria. The positive relationship between the three variables implies that an increase in energy consumption is a strong determinant of economic growth. The policy consequences suggest the need for Nigeria to improve its energy supply mix and consumption, especially regarding renewable energy, because of environmental and climate change considerations by ensuring the implementation of the 2015 National Renewable Energy and Energy Efficiency Policy (NREEEP) without fear of jeopardizing economic growth.

Keywords:

Economic Growth, ARDL, VAR, Renewable Energy Consumption, Non-renewable Energy Consumption.

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