DOES RENEWABLE ENERGY AND EXPORT INFLUENCE ECONOMIC GROWTH IN NIGERIA?

Abstract

The interconnection amid renewable energy, exports, and economic growth has thus emerged as a primary policy issue. Economic theories posit that GDP is often linked to increasing emissions and exports during the initial phases of development. Sequel to this, this study examines the connection between renewable energy, export and economic growth in Nigeria using ARDL techniques over the period of 1990-2023 employing time series data from World Development Indicator (WDI, 2023). The findings indicate that there is a negative connection between renewable energy and economic growth in Nigeria. Nigeria's trade profile, as a major exporter of primary products, contributes to global emissions. However, the emphasis of this analysis is Nigeria's carbon emissions, which may decline as emissions from more environmentally friendly exports rises. The study recommended real-world policy implementation such as regulatory rigidity, limited grid capacity for renewable integration, reliance on coal in certain regions, and the political economy of energy pricing may significantly influence the feasibility of proposed interventions.