EFFECT OF ECONOMIC DIVERSIFICATION ON ENERGY AND CARBON EFFICIENCY IN OIL-RICH ECONOMIES: Empirical Evidence from Nigeria

Category: Journal Articles
Author: Adeolu O. Adewuyi and Adebowale M. Adeleke
Volume: 59 Issue No:2 Year:2017

Abstract: This study investigated the impact of economic diversification on energy and carbon efficiency in Nigeria from 1981-2014. The study applied a two-stage approach to analyse the models articulated based on the standard theoretical and empirical literature on energy efficiency. Efficiency analysis indicates that the combination of inputs yielded a relatively higher output (good efficiency) during the 1998-2014 period compared to the earlier period of 1981-1997. However, an inputs mix generated a lower level of carbon emission (bad efficiency) in the periods, 1989-1991, 1995-1999 and 2009-2014. There was environmental inefficiency in the 1980s. However, apart from 1992/93, environmental efficiency was achieved in the 1990s. Similarly, besides 2000-2003, environmental efficiency was attained between 2004 and 2014. Positive net efficiency was higher during 1995-1999 and 2009-2014 compared to other periods. Output concentration (diversification) index rose from 0.32 in 1981 to between 0.4 and 0.5 in the subsequent years. Regression results confirmed that movement towards output concentration (and away from output diversification) will improve good efficiency. However, increase in GDP per capita and skill will promote bad efficiency; while increased output diversification and GDP per capita will also improve bad efficiency. In the same vein, results showed that increase in both GDP per capita and skill will lead to a reduction in environmental efficiency, while increase in GDP per capita and output diversification will improve environmental efficiency. The results show that movement towards output concentration will improve net environmental efficiency. It is concluded that economic (output) diversification is harmful for good, environmental and net efficiency, why it only helps abate the bad efficiency (increased carbon) in Nigeria. Some recommendations are made for future policy making.

JEL classification: L25; H21; O13; O47

2018-03-15
Visits : 359

ANNOUNCEMENT! ANNOUNCEMENT!! ANNOUNCEMENT!!! NES 2024 Annual Conference Change of Date - Update The Nigerian Economic Society wishes to inform its members and the general public of change in the dates of the NES 65TH ANNUAL CONFERENCE Venue: Shehu Musa Yar'Adua Conference Centre, Memorial Drive, CBD, Abuja Date: Tuesday, 3rd September to Thursday, 5th September, 2024 Thank you

The Nigerian Journal of Economic and Social Studies (NJESS) is a general-interest economics and social studies journal. The NJESS is the nation's oldest and most respected international scholarly journal in the economics profession and is celebrating over 50 years of publishing.

65th ANNUAL CONFERENCE ANNOUNCEMENT Date: 3rd - 5th September, 2024 Venue: Shehu Musa Yar'Adua Conference Centre, Memorial Drive, CBD, Abuja Conference Theme: Socio-Economic Development in Nigeria: Imperatives, Implications & Impacts. CALL FOR ABSTRACTS

Membership of the Society is open to any graduate of economics or allied subjects (Nigerians and non-Nigerians), or anyone adjudged to be sufficiently knowledgeable in Economics or allied subjects by the National Executive Council is eligible for admission into the Society on application.

The Nigerian Economic Society (NES) has established a Mentorship Programme to offer guidance, career development and knowledge transfer for early career economists. The NES Mentorship Programme serves as a framework to bridge the gap between emerging economists and experienced economists by facilitating meaningful connections, knowledge sharing, and professional development opportunities. The programme aims to empower early-career economists with the tools, resources, and support they need to thrive in their chosen careers and make valuable contributions to the field of economics. Link to application form: https://forms.gle/fgbBHQZRQdxHBRLZ9