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An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development

Author

Listed:
  • Timothy Ayomitunde Aderemi

    (Department of Economics, Accounting and Finance, Bells University of Technology, Ota, Nigeria and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria)

  • Abidemi Alejo

    (Department of Economics and Development studies, Covenant University, Ota, Nigeria and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria)

  • Olufemi Samuel Omoyele

    (Department of Business Administration and Marketing, Redeemer`s University, Ede, Osun State, Nigeria)

  • Olusegun Peter Olaoye

    (Academic Planning Unit and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria.)

  • Wahid Damilola Olanipekun

    (College of Management and Information Technology, American International University, West Africa, Gambia.)

  • Dominic Ezinwa Azuh

    (Department of Economics and Development Studies, Covenant University, Ota and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria.)

Abstract

The continuous demand and usage of energy in large quantum for industrial purposes has motivated the global advocacy for energy sustainability (SDG-7). Against this backdrop, this study employed various econometric techniques to study the nexus between clean energy supply in Nigeria and industrial development between 1990 and 2019. This study sets to establish the nature of the relationship in the long run, direction of causality and the stochastic dynamic interaction between clean energy supply and industrial development in Nigeria. Consequently, the following findings emerged from this study; clean energy supply and manufacturing value added had a significant negative relationship. This implies that the contribution of clean energy supply is negatively significant to the manufacturing value added in the Country. Therefore, the supply of electricity production from hydroelectric sources had not led to industrial development in Nigeria. Further evidence indicates that no feedback relationship exists between clean energy supply and industrial development. Also, the stochastic dynamic interaction between clean energy supply and industrial development shows a shock to manufacturing value added determines the behavior of clean energy supply to a larger extent in one hand, whereas, variance decomposition of clean energy supply shows the similar effect on the behavior of industrial development on the other hand. In the light of the findings from this study, the following recommendations are made for the policymakers in Nigeria; in achieving the Sustainable Development Goal (SDG 7), clean energy supply could be explored for future industrial development in Nigeria, thought it currently lacks the capacity to drive the manufacturing sector of the economy. And as such, the Nigerian policymakers and other stakeholders should work hard to achieve sustainable supply of adequate electricity production from hydroelectric sources in the country.

Suggested Citation

  • Timothy Ayomitunde Aderemi & Abidemi Alejo & Olufemi Samuel Omoyele & Olusegun Peter Olaoye & Wahid Damilola Olanipekun & Dominic Ezinwa Azuh, 2022. "An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 209-215, May.
    • Handle: RePEc:eco:journ2:2022-03-22
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    References listed on IDEAS

    as
    1. Timothy Ayomitunde Aderemi & Oyegoke Adebusola Adebola & Wahid Damilola Olanipekun & Olaoye Olusegun Peter & Ayodeji Gbenga Bamidele & Azuh Dominic Ezinwa, 2021. "Human Capital Development, Energy Consumption and Crude Oil Exports in Nigeria: Implications for Sustainable Development," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 443-449.
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    Cited by:

    1. Aliya Shakharova & Chinara Alamanova & Oleksandra Olshanska & Sofiia Kafka & Ilona Tuts & Gulnar Dugalova, 2023. "Towards the Implementation of the Environmental and Economic Doctrine of Energy Sector Development: An Environmental and Economic Assessment of Public-private Partnerships in Decarbonization," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 423-432, July.
    2. Bello, Mufutau Opeyemi & Ch'ng, Kean Siang, 2024. "Path to clean and sustainable energy from nuclear and renewable sources: Evidence from France," Utilities Policy, Elsevier, vol. 88(C).
    3. Romanus Osabohien & Timothy A. Aderemi & Amar Hisham Jaaffar & Emmanuel Oloke & Rowland Bassey & Nora Yusma Mohamed Yusoff & Abayomi Stephen Balogun & Nkiruka E. Ifekwem, 2024. "Electricity Consumption and Food Production in Malaysia: Implication for the Sustainable Development Goal 2," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 119-126, May.
    4. Umar Nawaz Kayani & Ahmet Faruk Aysan & Umer Iqbal & Muhammad Arif & Ijaz Ur Rehman, 2022. "Foreign Direct Investment Settlement, Novel Energy Methods and CO2 Emissions: Evidence From United Arab Emirates," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 364-369, November.
    5. Lawrence Imeokparia & Olaoye Olusegun Peter & Bahiru Akande Bello & Romanus Osabohien & Timothy Ayomitunde Aderemi & Obindah Gershon & Disi Aaron & Alejo Abidemi, 2023. "A Panel Analysis of Crude Oil Exports and Poverty Reduction in African Oil Producing Countries: Implication for the Sustainable Development Goal One," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 169-174, July.

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    More about this item

    Keywords

    Clean Energy Supply; Industrial Development; SDG-7; Econometric Techniques;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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