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Oil Price Shocks and Energy Consumption in Nigeria

Author

Listed:
  • Patricia Iyore Ajayi

    (Department of Economics, University of Ibadan, Nigeria)

  • Adedayo Emmanuel Longe

    (Centre for Petroleum, Energy Economics and Law (CPEEL), University of Ibadan, Nigeria)

  • Oladayo Ayokunle Omitogun

    (Centre for Petroleum, Energy Economics and Law (CPEEL), University of Ibadan, Nigeria)

  • Shehu Muhammad

    (Department of Social Science, Federal Polytechnic, Bida, Niger State, Nigeria)

Abstract

The study investigates the impact of oil price shocks on energy consumption in Nigeria using, Bai-Perron Structural Breaks Test, NARDL approach and VAR model to analyse the data spanning from 1978 through 2016. From the results, in the long and short-run, positive and negative changes in bonny light crude oil price positively impact on energy consumption in Nigeria. The study concludes from these findings that irrespective of changes in the price of oil, oil related energy sources are still considered and this is because of the challenges faced in the development of the country’s energy sector in general. Based on the findings, the study recommends that strategic investment attention should be paid to alternative sources of energy such as the renewables in order to reduce large dependency on oil related energy such as fossil fuels.

Suggested Citation

  • Patricia Iyore Ajayi & Adedayo Emmanuel Longe & Oladayo Ayokunle Omitogun & Shehu Muhammad, 2019. "Oil Price Shocks and Energy Consumption in Nigeria," Business & Management Compass, University of Economics Varna, issue 4, pages 275-293.
    • Handle: RePEc:vrn:journl:y:2019:i:4:p:275-293
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Oil price; Energy Consumption; Bai Perron; NARDL; VAR Model;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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