Can Renewable Energy, FDI and Economic Growth Stimulate Carbon Emission
DOI:
https://doi.org/10.51137/wrp.ijsbe.708Keywords:
Renewable Energy, FDI, Economic Growth, Carbon EmissionAbstract
The increasing concentration of CO₂ remains a significant challenge to global sustainability, particularly in emerging economies like Nigeria. As a country endowed with rich natural resources and a high possibility of economic expansion, Nigeria faces unique challenges in balancing economic growth and environmental sustainability. Sequel to this, this study examined the connection amid renewable energy, FDI, economic growth and carbon emission in Nigeria from using ARDL techniques over the period of 1990-2022 utilizing time series data from World Development Indicator. The findings indicate a statistically significant and stable long-term relationship among the measures. The results indicated that GDP substantially elevates CO₂ emissions both in the short and long term, suggesting that Nigeria's present economic activities remain predominantly carbon-intensive. Foreign Direct Investment (FDI) is strongly correlated with emissions, indicating a pollution haven effect, particularly in resource-intensive industries. Renewable energy usage markedly decreases CO₂ emissions, validating its efficacy in decarbonizing the Nigerian economy. The study advocated for promoting green investments, enhancing economic growth, advancing financial development, and incorporating environmental factors into economic planning.
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