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| Title: | Trade and the Nigerian Environment |
| Author(s): | TENDE Hope Burabari |
| Abstract: | This study examined the effect international trade has on the Nigerian environment by assessing the determinants of dioxide emissions in Nigeria between 1981 and 2020. The specific objectives are to examine the effects of trade openness, GDP growth, energy consumption, and population on the environment, proxied by carbon dioxide (CO2) emissions. To achieve these objectives, time series data for each of the variables were obtained from the World Development Indicators (WDI) and analyzed using descriptive statistics, KPSS unit root test, Johansen co-integration and dynamic least squares (DOLS). The unit root test results show evidence of first difference stationarity for all the variables in the model. This implies that all the variables are integrated of order one. The co-integration test result revealed that long run relationship exists between carbon dioxide emissions and the explanatory variables. The estimated model shows that GDP and energy has significant positive effects on carbon dioxide emissions. This implies that increase in economic activities and energy use generates adverse implications on the environment in the form of carbon dioxide emissions. The results further revealed that population growth has a significant negative effect on carbon dioxide emissions. However, trade openness does not significantly affect carbon dioxide emissions. This explains the fact that the Nigerian economy is import driven, and as such does not engage in large productions for export. Based on the findings, this study recommends that government should increase taxes on production and other economic activities which generate negative spill-over effects on the environment to reduce the contribution of GDP growth on carbon dioxide emissions. |
| Keywords: | Environment, GDP, World Development Indicators (WD1), and dynamic least squares (DOLS) |
| Journal: | Journal of Contemporary Research in Economics and Development Studies Vol 1 No 2 |
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