Macroeconomic Determinants of Renewable Electricity Technology Adoption in Nigeria
Macroeconomic Determinants of Renewable Electricity Technology Adoption in Nigeria
Author(s): Olufemi Muibi Saibu, Oluwasola E. OmojuContributor(s): Monika Paradowska (Editor), Joost (Johannes) Platje (Editor), Diana Cibulskienė (Editor)
Subject(s): Economy, Energy and Environmental Studies
Published by: Uniwersytet Opolski
Keywords: renewable technology; electricity consumption; economic development; Nigeria
Summary/Abstract: Renewable electricity technology adoption is an essential part of the measures to mitigate climate change and promote sustainable development. This paper investigates the drivers of and barriers to renewable electricity technology adoption in Nigeria. Specifically, the factors that influence the share of renewable electricity in total electricity consumption in Nigeria is investigated using data from 1981 to 2011 and employing the Johansen cointegration technique and vector error correction method. The results show that there is a long run relationship between renewable electricity consumption and GDP, trade openness, financial development and share of fossil fuel in energy consumption. Trade openness promotes renewable electricity consumption while obsession with economic growth and the lobby of conventional energy sources undermine it in Nigeria. Financial development does not have significant impact on renewable electricity technology adoption in Nigeria. It is recommended that the Nigerian government should pursue policies that not only increase the amount of renewable electricity, but also increase the share of renewables in total electricity consumption.
Journal: Economic and Environmental Studies
- Issue Year: 16/2016
- Issue No: 1 (37)
- Page Range: 65-83
- Page Count: 19
- Language: English