Population growth, electricity demand and environmental sustainability in Nigeria: insights from a vector auto-regressive approach
2022
Schneider, Nicolas
The aim of this paper is to investigate the relationships between population growth, energy needs, and environmental sustainability in Africa. To do so, we take Nigeria as an illustrative case and set-up a multivariate framework incorporating total population, electricity demand, per capita income and the amount of CO₂ yearly emitted by the power and heating sector over the largest period: 1971–2018. Results confirm the existence of a one-way causality from population to electricity consumption, per capita income, and CO₂ emissions without feedback. Besides, a unidirectional link running from electricity consumption to economic growth is depicted, congruent with the electricity-led growth hypothesis. Finally, electricity consumption is found to be a substantial environmental pollution-enabler in Nigeria. The provision of affordable electricity should be balanced by a trend from fossil-fuel supply to sustainable energy resources.
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