The Relationship between Energy Transition, Economic Growth, and Carbon Emission in Nigeria

This study investigates the relationship between energy transition, economic growth, and carbon emission in Nigeria. We employed three variables which are: (i) GDP as a proxy for economic growth (ii) Renewable energy consumption as a proxy for transition (iii) Carbon emission, and utilized the ARDL bound test technique developed by Pesaran, et, al. (2001) with an annual dataset ranging from 1990-2021. However, we found a long-run relationship among the variables, and that carbon emission has a negative and significant relationship in the long-run; but renewable energy consumption has a positive and significant effect on growth, though the short-run effect is negative. Also, renewable energy consumption has a negative effect on carbon emission in both the long-run and short-run. Therefore, the study recommend that the authority should invest heavily on renewables so as to make it accessible and sustainable to low-income earners.