IMPACT OF CLIMATE CHANGE ON ECONOMIC GROWTH IN NIGERIA

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ABSTRACT

This study examined the impact of climate change on the overall growth of the Nigerian economy. The Error Correction Model and ordinary least squares (OLS) estimation technique and data for the period 1981-2021 were used. Changes in temperature and carbon emission were used to capture climate change, while energy consumption was used as control variables. The results indicate that in the long-run, carbon emissions affect growth adversely. In addition, energy consumption impacts positively on growth in the short-run and long-run. These results imply that Nigerian government should evolve and implement policies to curb carbon emissions. In particular, a National Climate Change Commission is required in Nigeria to deal with all climate change issues. Furthermore, the finding that energy consumption stimulate growth in Nigeria means that policymakers and governments at all levels in Nigeria should evolve and implement policies to encouraged this desirable outcomes.

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