Powering Progress: An Empirical Investigation of the Impact of Energy Consumption on Economic Growth in Nigeria
DOI:
https://doi.org/10.31674/ijmhs.2024.v08i02.003Abstract
Energy is the backbone of modern economies, driving development, innovation, and sustainability. This study discusses the crucial role of energy resources in shaping a country's future, quality of life, health, and climate. Focusing on Nigeria, one of the fastest-growing economies globally, the paper explores the impact of energy consumption on economic progress from 1980 to 2022. Energy poverty and insecurity, coupled with unreliable access to modern energy services, have hindered Nigeria's economic potential. Employing up-to-date empirical analysis and future forecast techniques, the study finds that energy consumption positively influences both short-term and long-term economic growth. The population growth rate negatively affects long-term growth, while the inflation rate hampers long-term growth but spurs short-term growth. Carbon emissions contribute positively to growth, while foreign direct investment boosts long-term growth but suppresses short-term growth. The study recommends policies to stimulate sustainable economic growth, attract foreign investments, enhance energy infrastructure, manage inflation, and promote environmental sustainability. Emphasising the need for policy coherence, the study advises coordinated efforts across monetary, fiscal, trade, and energy sectors to ensure consistent and effective strategies for long-term sustainable growth in Nigeria.
Keywords:
ARDL Analysis, Economic Growth, Energy Consumption, Forecast Analysis, Impacts, NigeriaDownloads
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