Fossil Fuel, Renewable Energy, Global Warming and Nigerian Economic Growth: A Causal Inference

Abstract

The study examines the causality between sources of primary energy consumption, carbon dioxide emission and Nigerian economic growth using annual times series data for the period 1971 to 2013. The Toda-Yamamoto Granger causality approach was employed to establish the pattern and direction of causality. The results supported the growth hypothesis for Nigeria with respect to fossil fuel and combustible energy consumption while feedback hypothesis is supported with respect to non-combustible energy consumption. It also suggests that current level of primary energy consumption sources do not Granger cause global warming. The study recommends adopting a sustainable, expansive energy use strategy and diversifying further into the use of cleaner alternative sources of energy to promote economic, environmental and healthy well-being.

Keywords: Fossil fuel, Carbon dioxide emission, Renewable, Causality, Economic growth, VAR