ENERGY AND CLIMATE CHANGE: IMPACTOF FOOD, WATER AND ENERGY NEXUS ON ECONOMIC GROWTH IN NIGERIA

ENERGY AND CLIMATE CHANGE: IMPACTOF FOOD, WATER AND ENERGY NEXUS ON ECONOMIC GROWTH IN NIGERIA

Author by Mrs. Iyabo Okedina

Journal/Publisher: Cedsaf Journal Of Business And Economy

Volume/Edition: 6

Language: English

Pages: 286 - 297

Abstract

The study testthe simultaneous relationship of Food, water and Energy on Economic growth in Nigeria and develop an integrated model for sustainable development in these three sectors. Annual data from 1990 –2017 was gathered from World development Index: Nigeria, and CBN Statistical bulletin on food productivity index, energy use per capita, water productivity and GDP per capita. The Johansen co-integration, Error correction model and Simultaneous equation model was used to show the long run relationship and test the speed of adjustment that it took all the variables to converge in the long-run. The Johansen co-integration test showed that there was long-run co-movement among the variables. Thus, this result showed there was a convergence relationship among the variables in the long-run. The result of the ECM indicates that the deviation of the economic growth model from the long-run equilibrium level is corrected by 0.009%. The simultaneous equation result showed that both energy use and water productivity are significant in explaining gross domestic product. For a nation like Nigeria to attract foreign direct investment, there has to be a synergy of these three sectors such that the vast resources on water, agricultural abundance in arable lands and energy resources (especially renewable sources of energy such as sun, wind, water) can be utilized internally with improved processes and technologies. Improvements should be worked out in all three sectors in the nexus approach such that no sector is lacking input, policies,government interventions, private organization and citizen involvement to allow for internalization of this development, this will in turn encourage foreign direct investment.


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