Author: Adeolu O. Adewuyi and Olabanji B. Awodumi
Volume: 59 Issue No:3 Year:2017

Abstract: This study examined the effect of export diversification on pollution in Nigeria from 1981-2014. Based on the autoregressive distributed lag (ARDL) model, the results reveal that export market diversification has significant positive effect on total carbon emissions in the long-run. Further, while the effect of per capita energy consumption on total carbon emission is positive, that of trade openness is negative both in the long run and the short run. Long-run results show that both export product concentration and export market diversification produce significant negative effects on transport carbon emission. The results indicate that transport carbon emission elasticity with respect to export product concentration and export market diversification are 8.53 and 0.59 respectively. However, short-run estimates show that the impact of export product concentration and export market diversification on transport carbon emission is positive and significant. The results reveal that the transport carbon emission elasticity with respect to export product concentration and export market diversification are 3.03 and 0.22 respectively. The results also show that per capita energy consumption reduced transport carbon emission in the long run and in the short run, while trade openness increased this emission in the two periods. Based on the foregoing, some recommendations are articulated for policy.

JEL Classification: L25, F18, Q56