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Energy Consumption and Economic Growth Nexus in Nigeria: Evidence based on ARDL Bound Test Approach

Author

Listed:
  • Lasbrey Anochiwa

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Oguwuike Michael Enyoghasim

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Kalu E. Uma

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • C. Paul Obidike

    (Department of Accountancy/Banking and Finance, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Iyke Uwazie Uwazie

    (Department of Economics, Michael Okpara University of Agriculture, Umudike, Nigeria)

  • Ikwor Okoroafor Ogbonnaya

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • O. Richard Ojike

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Clara Kelechi Anyanwu

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

Abstract

This study examines the relationship between economic growth and energy consumption in Nigeria by using ARDL bound test regression analysis. In the investigation process energy consumption, was disaggregated into electricity, coal and petroleum with growth rate of GDP data is used from 1980 to 2017. The findings show that petroleum and electricity variables are positive and significant to growth while coal is positive but not significant. Overall outcome is that energy consumption has a positive relationship with economic growth. The coal deposit must be put in use to increase energy production and consumption and stimulate other economic activities for growth.

Suggested Citation

  • Lasbrey Anochiwa & Oguwuike Michael Enyoghasim & Kalu E. Uma & C. Paul Obidike & Iyke Uwazie Uwazie & Ikwor Okoroafor Ogbonnaya & O. Richard Ojike & Clara Kelechi Anyanwu, 2020. "Energy Consumption and Economic Growth Nexus in Nigeria: Evidence based on ARDL Bound Test Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 713-721.
    • Handle: RePEc:eco:journ2:2020-06-92
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    References listed on IDEAS

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    Cited by:

    1. Eldowma, Ibrahim Ahmed & Zhang, Guoxing & Su, Bin, 2023. "The nexus between electricity consumption, carbon dioxide emissions, and economic growth in Sudan (1971–2019)," Energy Policy, Elsevier, vol. 176(C).
    2. Chien-Heng Chou & Sa Ly Ngo & Phung Phi Tran, 2023. "Renewable Energy Integration for Sustainable Economic Growth: Insights and Challenges via Bibliometric Analysis," Sustainability, MDPI, vol. 15(20), pages 1-26, October.
    3. Esmail M. A. Deryag & Wagdi Khalifa, 2024. "A Panel Analysis on the Nexus between Financial Development, Oil Production, and Trade-Openness and Its Impact on Sustainable Economic Growth: Evidence from Selected Arab Economies," Sustainability, MDPI, vol. 16(12), pages 1-16, June.
    4. Ahmad Farabi & Zamroni & Dini Oktarina Dwi Handayani & Rahmat Heru Setianto, 2024. "Sustainable Development in Indonesia: A Study of Energy Consumption, CO2 Emissions, FDI, and Gross Capital Formation," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 435-446, March.
    5. Cordelia Onyinyechi Omodero & Uwuigbe Uwalomwa, 2021. "Energy Absorption, CO2 Emissions and Economic Growth Sustainability in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 69-74.

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    More about this item

    Keywords

    Energy consumption; economic growth; ARDL test.;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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