Climate Change-Economic Growth Nexus in Nigeria

Abstract

The study examined the climate change-economic growth nexus in Nigeria for the period 1981- 2021using time series data obtained from the Central Bank of Nigeria Statistical Bulletin. Economic growth was specified as a function of capital stock, variables precipitation, temperature, carbon dioxide emission, and inflation. Preliminary test on the time series data was done using pairwise correlation, Augmented Dickey-Fuller unit root test for stationarity and Bound test cointegration analysis for long run relationship. The technique of Autoregressive Distributed Lagged Model (ARDL) was employed to estimate the parameters of the model since the time series were stationary at levels I(0) and at first difference Result indicates that that precipitation, mean temperature and carbon dioxide emissions have insignificant impact on economic growth over the period under study. The study recommends the necessity for economic managers in Nigeria to embrace effective management of water resources through purposeful construction of irrigation projects in order to avoid drought and ensure availability of arable land for agriculture, and consequently economic growth. Economic managers should lay emphasizes on those goods and services, especially staple foods like cereals, tubers, spices, etc. that require hot climate for production.

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