IMPACT OF ENVIRONMENTAL DEGRADATION ON ECONOMIC GROWTH IN NIGERIA (1991-2023)

Abstract

The study analyse the impact of environment degradation on Nigeria economic growth. The study used secondary time series data for the period 1991-2023, sourced from Central Bank of Nigeria statistical bulletin (2023) and world development indicator (2023). Autoregressive distributed lag model(ARDL) was utilized to estimate the relationship between variables of the study, the variables employed include, trade openness, real gross domestic product, CO₂ emission, gross fixed capital formation and unemployment rate. The findings of the study reveal that there is a long run relationship between the variables under consideration, CO₂ emission have a negative and positive relationship with economic growth in the short and long run respectively, (this depict that CO₂ emission should be well managing to prevent long term effect on health and growth of Nigeria economy). The study therefore recommend that Carbon emission should be highly regulated, incentive for green energy usage should be put in place for firm and transport companies to move from using the conventional fossil fuel to solar energy, gas power generation adoption and electricity expansion usage to stimulate local production in a safe and conducive environment.