The Effect of Natural Gas Utilization and CO2 Emissions on the Economic Growth of Nigeria

International Journal of Economics and Management Studies
© 2020 by SSRG - IJEMS Journal
Volume 7 Issue 1
Year of Publication : 2020
Authors : Nnaemeka E. Ezenwa , Victor O. Nwatu
How to Cite?

Nnaemeka E. Ezenwa , Victor O. Nwatu, "The Effect of Natural Gas Utilization and CO2 Emissions on the Economic Growth of Nigeria," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 1, pp. 185-190, 2020. Crossref,


The paper examines the causality and co-integration relationship between natural gas utilization, CO2 per capita emissions, and economic growth in Nigeria from 1981 to 2015 using the granger causality technique and autoregressive distributive lag (ARDL) approach. Granger causality test results show the bi-directional casualty between GDP per capita and CO2 emissions. Also, casualty between natural gas utilization and GDP per capita is bi-directional. However, causality for natural gas utilization and CO2 emissions is unidirectional, where natural gas causes CO2 emissions. The co-integration test suggests a long-run relationship among natural gas utilization, CO2 emissions, and GDP per capita. We find that for both the long-run and short-run ARDL model decrease in CO2 emissions will encourage economic growth. In the shortrun, an increase in natural gas utilization supports economic growth.


CO2, Natural Gas, GDP per capita, Causality, ARDL.


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