An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development
The continuous demand and usage of energy in large quantum for industrial purposes has motivated the global advocacy for energy sustainability (SDG-7). Against this backdrop, this study employed various econometric techniques to study the nexus between clean energy supply in Nigeria and industrial...
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| Format: | Article |
| Language: | English |
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EconJournals
2022-05-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/13109 |
| _version_ | 1828021143200595968 |
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| author | Timothy Ayomitunde Aderemi Abidemi Alejo Olufemi Samuel Omoyele Olusegun Peter Olaoye Wahid Damilola Olanipekun Dominic Ezinwa Azuh |
| author_facet | Timothy Ayomitunde Aderemi Abidemi Alejo Olufemi Samuel Omoyele Olusegun Peter Olaoye Wahid Damilola Olanipekun Dominic Ezinwa Azuh |
| author_sort | Timothy Ayomitunde Aderemi |
| collection | DOAJ |
| description |
The continuous demand and usage of energy in large quantum for industrial purposes has motivated the global advocacy for energy sustainability (SDG-7). Against this backdrop, this study employed various econometric techniques to study the nexus between clean energy supply in Nigeria and industrial development between 1990 and 2019. This study sets to establish the nature of the relationship in the long run, direction of causality and the stochastic dynamic interaction between clean energy supply and industrial development in Nigeria. Consequently, the following findings emerged from this study; clean energy supply and manufacturing value added had a significant negative relationship. This implies that the contribution of clean energy supply is negatively significant to the manufacturing value added in the Country. Therefore, the supply of electricity production from hydroelectric sources had not led to industrial development in Nigeria. Further evidence indicates that no feedback relationship exists between clean energy supply and industrial development. Also, the stochastic dynamic interaction between clean energy supply and industrial development shows a shock to manufacturing value added determines the behavior of clean energy supply to a larger extent in one hand, whereas, variance decomposition of clean energy supply shows the similar effect on the behavior of industrial development on the other hand. In the light of the findings from this study, the following recommendations are made for the policymakers in Nigeria; in achieving the Sustainable Development Goal (SDG 7), clean energy supply could be explored for future industrial development in Nigeria, thought it currently lacks the capacity to drive the manufacturing sector of the economy. And as such, the Nigerian policymakers and other stakeholders should work hard to achieve sustainable supply of adequate electricity production from hydroelectric sources in the country.
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| first_indexed | 2024-04-10T11:48:01Z |
| format | Article |
| id | doaj.art-1833966211454896b54054fe3b39671a |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-10T11:48:01Z |
| publishDate | 2022-05-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-1833966211454896b54054fe3b39671a2023-02-15T16:17:15ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532022-05-0112310.32479/ijeep.13109An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development Timothy Ayomitunde Aderemi0Abidemi Alejo1Olufemi Samuel Omoyele2Olusegun Peter Olaoye3Wahid Damilola Olanipekun4Dominic Ezinwa Azuh5Department of Economics, Accounting and Finance, Bells University of Technology, Ota, Nigeria and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, NigeriaDepartment of Economics and Development studies, Covenant University, Ota, Nigeria and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, NigeriaDepartment of Business Administration and Marketing, Redeemer`s University, Ede, Osun State, NigeriaAcademic Planning Unit and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria.College of Management and Information Technology, American International University, West Africa, Gambia.Department of Economics and Development Studies, Covenant University, Ota and Centre for Economic Policy and Development Research (CEPDeR), Covenant University, Ota, Nigeria. The continuous demand and usage of energy in large quantum for industrial purposes has motivated the global advocacy for energy sustainability (SDG-7). Against this backdrop, this study employed various econometric techniques to study the nexus between clean energy supply in Nigeria and industrial development between 1990 and 2019. This study sets to establish the nature of the relationship in the long run, direction of causality and the stochastic dynamic interaction between clean energy supply and industrial development in Nigeria. Consequently, the following findings emerged from this study; clean energy supply and manufacturing value added had a significant negative relationship. This implies that the contribution of clean energy supply is negatively significant to the manufacturing value added in the Country. Therefore, the supply of electricity production from hydroelectric sources had not led to industrial development in Nigeria. Further evidence indicates that no feedback relationship exists between clean energy supply and industrial development. Also, the stochastic dynamic interaction between clean energy supply and industrial development shows a shock to manufacturing value added determines the behavior of clean energy supply to a larger extent in one hand, whereas, variance decomposition of clean energy supply shows the similar effect on the behavior of industrial development on the other hand. In the light of the findings from this study, the following recommendations are made for the policymakers in Nigeria; in achieving the Sustainable Development Goal (SDG 7), clean energy supply could be explored for future industrial development in Nigeria, thought it currently lacks the capacity to drive the manufacturing sector of the economy. And as such, the Nigerian policymakers and other stakeholders should work hard to achieve sustainable supply of adequate electricity production from hydroelectric sources in the country. https://econjournals.com/index.php/ijeep/article/view/13109Clean Energy SupplyIndustrial DevelopmentSDG-7Econometric Techniques |
| spellingShingle | Timothy Ayomitunde Aderemi Abidemi Alejo Olufemi Samuel Omoyele Olusegun Peter Olaoye Wahid Damilola Olanipekun Dominic Ezinwa Azuh An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development International Journal of Energy Economics and Policy Clean Energy Supply Industrial Development SDG-7 Econometric Techniques |
| title | An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development |
| title_full | An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development |
| title_fullStr | An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development |
| title_full_unstemmed | An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development |
| title_short | An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development |
| title_sort | econometric analysis of clean energy supply and industrial development in nigeria implications for sustainable development |
| topic | Clean Energy Supply Industrial Development SDG-7 Econometric Techniques |
| url | https://econjournals.com/index.php/ijeep/article/view/13109 |
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