Acta Univ. Sapientiae, Economics and Business, 12 (2024) 51–70
Abstract. In recent decades, Nigeria has emerged as a rapidly growing economy, while at the same time it faces pressing environmental concerns, particularly regarding rising carbon emissions. Although factors like foreign aid and energy usage contribute to economic prosperity, they just as well lead to increases in carbon emissions, causing concern about environmental degradation. This study investigates the complex links between foreign aid, energy usage, economic growth, and carbon emissions in Nigeria from 1990 to 2021. The autoregressive distributed lag analysis revealed mixed findings about how different economic elements relate to carbon emissions.While foreign aid, gross domestic product (GDP), and trade openness correlated positively but insignificantly, energy usage had an insignificant negative association with carbon emissions. Notably, financial development and remittances showed statistically significant inverse relationships with carbon emissions in the long run, and the speed of adjustment proved to be negative and significant in the short run. This research recommends policymakers to cut carbon dioxide while also acknowledging that the underlying dynamics are complicated.
Keywords: CO2 emissions, energy consumption, economic growth, foreign aid, ARDL, Nigeria
JEL Classification: O13 Q43 Q54 O55
SAPIENTIA HUNGARIAN UNIVERSITY OF TRANSYLVANIA
The Sapientia Hungarian University of Transylvania is the independent university of the Hungarian community in Romania, which aims at providing education to the members of our community and performing scientific research on a high professional level.
Sapientia Hungarian University of Transylvania,
Scientia Publishing House
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Email: acta @ acta.sapientia.ro
