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| Title: | Environmental Degradation and Economic Growth in Nigeria |
| Author(s): | OKADIGWE Chukwufumnaya Victor |
| Abstract: | The study analyzed the extent to which economic growth in Nigeria could be viewed as sustainable when considered from the perspective of environmental degradation. Thus the study examined the effect of economic growth on environmental degradation. The study specifically examined how GDP, proxy for economic growth, population, agricultural output and oil activities affect environmental degradation. Data were extracted from CBN statistical bulletin, World Bank, Fact Fish, and analyzed using ADF unit root and Johanson cointegration tests as well as ECM. The trace statistics showed three cointegration equations at 5% significance level which implied that longrun relationship exists among the variables. The cointegration result showed that GDP and POP have a negative relationship with the CO2 in the longrun. The results also revealed that agricultural output and oil price have positive relationship with environmental degradation. The Fstatistic of 9.65 with a probability value of 0.000036 showed that the whole model is significant. The R2 in the parsimonious model showed that the exogenous variables in the ECM equation explained 83% of total variation or changes in CO2 and the remaining 17% is accounted for by factors outside the model. Also the Fstatistics of 15.5813 in the ECM2 with a probability value of 0.000 provides basis to logically conclude that the overall result obtainable in ECM2 is statistically significant. Based on these findings, the hypothesized positive relationship between economic growth and environmental degradation serves a dangerous policy guide to solving environmental problems in Nigeria. The conclusion is that to ensure sustainability, there should be an urgent need to look beyond Environment Kunznets by adopting a more courageous and pragmatic measure of environmental preservation in Nigeria. |
| Keywords: | Economic growth, environment, population growth, agriculture, degradation |
| Journal: | Journal of Contemporary Research in Economics and Development Studies (JCREDS) |
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