International Journal of Development and Economic Sustainability (IJDES)

EA Journals

Economic Implications of Environmental Degradation in Nigeria: Is the Environmental Kuznets Curve Relevant to Nigeria


Challenges of environmental degradation have been an impediment to the level of economic progress in Nigeria. The major objective of the paper is to establish the economic consequence of environmental degradation drawing from the Environmental Kuznets Curve (EKC) framework. The research covered the period between 1986 and 2017. The Ordinary Least Squares and Granger Causality were used to analyze the data. The result indicates that per capita income has a positive and insignificant relationship with carbon emission. An indication of the absence of the EKC. The square of the per capita income has a positive and insignificant relationship with carbon emission. A further confirmation of the absence of the EKC in Nigeria. Population has a significant and positive impact on the level of carbon emission. Openness and FDI have positive and significant impact on carbon emission. The result of the granger causality test indicates no causal relationship between carbon emission and per capita income. Increase in per capita income that is not followed by a rise in inflation rate as well as strong regulatory measures are recommended.

Keywords: EKC, FDI, Per Capita Income, Population, carbon emission, trade openness Ordinary Least Squares

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