ADSU International Journal of Applied Economics, Finance and Management

Analysing the Validity of the Environmental Kuznets Curve  Hypothesis on Emission in Nigeria

Abstract

In spite of the level of income that has been attained in the developed economies, environmental challenge is still an issue affecting both developed and developing countries, and also one of the targets of global sustainable development goal is to reduce carbon dioxide emission (CO2) to zero (0%) by the year 2050. This study investigated the validity of the environmental Kuznets curve hypothesis on carbon dioxide emission (CO2) in Nigeria. The study adopted classical reduced cubic form of environmental Kuznets curve (EKC) model. Secondary data were sourced from the World Bank’s World Development Indicator (WDI, 2024) from 1980 to 2023. The study employed correlation matrix, Autoregressive distribution lag (ARDL) bound test to analyze the data. The result of bound test showed that there is a long run relationship among the variables. The results of the short run estimates revealed that the three coefficients of income per capita are in line with the inverted Ushape of the Environmental Kuznets Curve (EKC) that requires the coefficients of income per capita (GDP/P) to be positive, the coefficient of income per square (GDP/P2) to be negative and the coefficient of income per capita cubed (GDP/P3) to be positive. The study therefore recommended that government should pursue sustainable growth policies that offer opportunities for rapid growth and sustained economic growth without detrimental effects on environmental quality.