Entrepreneurship and Environmental Sustainability: Evidence From Nigeria

Abstract

The study conducts an investigation on the causal relationship between Entrepreneurship and environment using the co integrating regression (COINTREG) or Fully Modified Least Squares approach (FMOLS). Annual time series data is employed for the period spanning 2000-2012. The results which emanated from the findings depict that there was the existence of a long run relationship between entrepreneurship and CO₂ per capita (a measure of environmental sustainability). The results further reveal the existence of the Environmental Kuznets Curve (EKC). The percentage of the service sector shows a positive relationship with CO2 emission. This is owing to the erratic power supply in Nigerian economy which makes service firms dependent on self-power generators that make use of fossil fuels and emit large sum of CO_2. The policy lesson from the findings shows the framework that entrepreneurship has massive impacts on environmental sustainability. Therefore the study recommends opportunities in green building, renewable energy, sustainable agriculture; recycling business and green financing created by degrading environment in Nigeria should be adopted for environmental entrepreneurship to boost sustainable economic development. While the erratic power supply in Nigeria should also be improved upon to reduce the use of self-power generators that use fossil fuels and emit large sums of CO₂.

Keywords: Entrepreneurship, Environmental Sustainability, EKC, C02, Service Sector

JEL Classification: O31, Q56, O44