ADSU International Journal of Applied Economics, Finance and Management

Impact Of Green Economy On Poverty Reduction In Nigeria

Abstract

This study examined the impact of green economy on poverty reduction in Nigeria. Quantitative approach was adopted using data on per capita income (dependent variable), renewable energy consumption, arable land cultivation and access to renewable energy (independent variables). The data were analyzed using Auto-regressive Distributed Lag approach. The result revealed that renewable energy consumption negatively affected per capita income in both short and long run periods. The effect was only significant in the long run. Arable land cultivation also affected per capita income negatively with the effect becoming significant only in the long run while access to renewable energy was the only variable that had a positive effect on per capita income in both short run and long run. The study concluded that the green economy in Nigeria has not been adequately utilized for enhancing the living standards of the people. Nigeria has a growing access to renewable energy but the actual consumption of renewable energy showed inverse relationship with per capita income which is an indication of non-usage of renewable energy which may have been propelled by low infrastructure and other externalities. It was recommended that government and individuals need to protect arable lands for cultivation, as well as improve the actual utilization of renewable energy by providing renewable energy infrastructure which is one aspect of the green economy that can enhance the income prospects of households.