Examining the Linkages between Environmental Quality and Sustainable Development in Nigeria

Increasing environmental degradation and its impact on long-term economic prosperity have become major global concerns, particularly in developing economies like Nigeria. Environmental quality is crucial for Sustainable Development (SD), affecting economic growth, resource availability, and societal well-being. However, balancing economic growth and environmental preservation remains a challenge for policymakers. Therefore, this study uses an Autoregressive Distributed Lag (ARDL) estimation approach to examine the relationship between environmental quality and SD in Nigeria using quarterly data from 2000 to 2021. The research examines the impacts of CO 2 emissions, forest area, Natural Resource Depletion (NRD), capital, and labor on SD from both short- and long-term perspectives. The findings demonstrate that CO 2 emissions negatively affect SD, emphasizing the importance of strong environmental legislation. In contrast, forest areas have a beneficial impact on SD, emphasizing the necessity of environmental preservation. Lagged and contemporary NRDs show trade-offs between resource use and long-term prosperity. Capital emerges as a key engine of SD. However, this study finds that factors like labor lack statistical significance in explaining variations in SD. These insights provide valuable guidance for policymakers aiming to balance economic growth with environmental sustainability. The study recommends the implementation of stringent environmental policies to curb CO 2 emissions and emphasizes the need for responsible resource management practices to mitigate the adverse effects of NRD.