Assessing the Impact of Economic Growth, Energy Consumption, and Trade Openness on Carbon Emissions in Nigeria

Abstract

Despite global efforts to address climate change, many developing economies face the challenge of balancing economic growth with rising carbon emissions. This study investigates this critical issue in Nigeria by examining the impact of economic growth, energy consumption, and trade openness on carbon emissions. Utilizing a robust econometric approach with time-series data, the research employs advanced modeling techniques to capture both short-run dynamics and long-run relationships, while also accounting for structural complexities and potential feedback loops. The findings indicate that economic expansion remains significantly linked to increased emissions, and energy use emerges as a dominant factor driving environmental degradation. Contrary to some hypotheses, trade openness appears to offer a potential pathway for emissions reduction. These results underscore the urgent need for context-specific strategies in Nigeria that prioritize decoupling growth from emissions, accelerating the transition to cleaner energy sources, and strategically leveraging trade to promote sustainable development. The study provides evidence-based information to guide policymakers in managing the nation's climate challenges and pursuing a sustainable future.