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Does Public Capital Expenditure Reduce Energy Poverty? Evidence from Nigeria

Author

Listed:
  • Stephen K. Dimnwobi

    (NnamdiAzikiwe University Awka, Nigeria)

  • Favour C. Onuoha

    (Abakaliki, Nigeria)

  • Benedict I. Uzoechina

    (NnamdiAzikiwe University Awka, Nigeria)

  • Chukwunonso Ekesiobi

    (Igbariam, Nigeria)

  • Ebele S. Nwokoye

    (NnamdiAzikiwe University Awka, Nigeria)

Abstract

Purpose - Given the ever-growing fiscal commitments of Nigeria and her chequered history of electricity generation and distribution, the fortunes of the energy sector in the country have been affected by the prevalence of energy poverty. Government policies such as public capital expenditure (PCE) present a crucial option for reducing energy poverty in Nigeria, providing the research impetus for this study. Design/methodology/approach -To investigate the relationship between government capital spending and five distinct energy poverty proxies, this research applies the Bayer-Hanck cointegration system and the Auto-Regressive Distributed Lag (ARDL) bound test. Findings -The findings indicate that public capital spending in Nigeria worsens energy poverty by reducing access to electricity, urban electrification, renewable energy consumption, and renewable electricity generation, with a positive but insignificant influence on rural electrification. Originality/value – This inquiry presents a pioneering investigation of the nexus between PCE and energy poverty in Nigeria. Also, aside from the variables of energy poverty adopted by existing studies, this study incorporates renewable energy consumption and renewable electricity output with implications for energy poverty and sustainable development.

Suggested Citation

  • Stephen K. Dimnwobi & Favour C. Onuoha & Benedict I. Uzoechina & Chukwunonso Ekesiobi & Ebele S. Nwokoye, 2022. "Does Public Capital Expenditure Reduce Energy Poverty? Evidence from Nigeria," Working Papers 22/033, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:22/033
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    References listed on IDEAS

    as
    1. Samson Nonso Okafor & Chukwunonso Ekesiobi & Ogonna Ifebi & Stephen Kelechi Dimnwobi & Simplice A. Asongu, 2022. "Testing the triple deficit hypothesis for sub‐Saharan Africa: Implications for the African Continental Free Trade Area," African Development Review, African Development Bank, vol. 34(1), pages 142-153, March.
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    4. Chaudhry, Sajid M. & Shafiullah, Muhammad, 2021. "Does culture affect energy poverty? Evidence from a cross-country analysis," Energy Economics, Elsevier, vol. 102(C).
    5. Koomson, Isaac & Danquah, Michael, 2021. "Financial inclusion and energy poverty: Empirical evidence from Ghana," Energy Economics, Elsevier, vol. 94(C).
    6. Chukwuebuka Bernard Azolibe & Jisike Jude Okonkwo & Patrick Kanayo Adigwe, 2020. "Government Infrastructure Expenditure and Investment Drive in an Emerging Market Economy: Evidence from Nigeria," Emerging Economy Studies, International Management Institute, vol. 6(1), pages 61-85, May.
    7. Junsoo Lee & Mark C. Strazicich, 2003. "Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1082-1089, November.
    8. Oluwasola Emmanuel Omoju & Lulit Mitik Beyene & Emily Edoisa Ikhide & Stephen Kelechi Dimwobi & Augustina Ehimare, 2020. "Assessing the Macroeconomic Impacts of Financing Options for Renewable-Energy Policy in Nigeria: Insights from a CGE Model," Working Papers MPIA 2020-01, PEP-MPIA.
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    Cited by:

    1. Stephen K. Dimnwobi & Kingsley I. Okere & Favour C. Onuoha & Chukwunonso Ekesiobi, 2022. "Energy Poverty, Environmental Degradation and Agricultural Productivity in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 22/096, African Governance and Development Institute..
    2. Onuoha, Favour Chidinma & Dimnwobi, Stephen Kelechi & Okere, Kingsley Ikechukwu & Ekesiobi, Chukwunonso, 2023. "Funding the green transition: Governance quality, public debt, and renewable energy consumption in Sub-Saharan Africa," Utilities Policy, Elsevier, vol. 82(C).
    3. Pham, Thi Ha An & Lin, Chia-Yang & Moslehpour, Massoud & Vo, Thi Thuy Van & Nguyen, Hai-Tuan & Nguyen, Tran Thai Ha, 2024. "What role financial development and resource-curse situation play in inclusive growth of Asian countries," Resources Policy, Elsevier, vol. 88(C).
    4. Uju Regina Ezenekwe & Eze A. Eze & Geraldine Ejiaka Nzeribe & Maria Chinecherem Uzonwanne, 2023. "Winning the Environmental Sustainability Crusade: Do Agricultural Development and Public Debt Mitigate Environmental Pollution in Nigeria?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1481-1497, September.
    5. Arkadiusz Piwowar, 2022. "Energy Poverty as a Current Problem in the Light of Economic and Social Challenges," Energies, MDPI, vol. 15(22), pages 1-9, November.
    6. Okere, Kingsley Ikechukwu & Dimnwobi, Stephen Kelechi & Ekesiobi, Chukwunonso & Onuoha, Favour Chidinma, 2023. "Turning the tide on energy poverty in sub-Saharan Africa: Does public debt matter?," Energy, Elsevier, vol. 282(C).
    7. Zhang, Sheng-Hao & Yang, Jun & Feng, Chao, 2023. "Can internet development alleviate energy poverty? Evidence from China," Energy Policy, Elsevier, vol. 173(C).

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    Keywords

    Public Capital Expenditure; Energy Poverty; Electricity; Nigeria;
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