Impact of Energy Utilization on Pollution and Productivity in Nigeria

Abstract

This study investigates the impact of Energy Utilization on Pollution and Productivity in Nigeria from 1990 - 2020. Thus, to measure the significance of the relationship existing among the study’s primary variables (Energy, Production and Productivity), four data points were selected and analysed i.e., Fossil Fuel Consumption (FFC), Electricity Consumption (EC), Carbon Emission (CE) and Gross Domestic Product Growth Rate (GDPGR). These data were subjected to regression analysis at 5% level of significance using the ordinary least square method. Findings indicated that Fossil-Fuel Consumption has a positive and significant impact on economic growth and carbon emission, however, Electricity Consumption has a negative and significant impact on carbon emission but a positive and significant impact on economic growth. Based on these results, the study deduced that a long run positive relationship exists between Energy utilization and Productivity, also a positive but detrimental relationship exists between Energy and Pollution which may have a long-term adverse effect on the general welfare of the populace in terms of health implications and decline in productivity. Therefore, to enhance general welfare of the citizenry and boost productivity exponentially in the Nation, this study recommends that national energy mix be optimized by the government by minimizing use of energy sources that release carbon dioxide into the atmosphere and pursue development of environmentally friendly sources of energy.