Pages: 75-81 Economic Growth in Nigeria: An Application of Toda and Yamamoto Procedure

This paper investigated the relationship between energy consumption, carbon dioxide (CO2) emissions and economic growth in Nigeria using using modified version of granger causality test suggested by Toda and Yamamoto. The empirical result of the causality test indicates unidirectional causality running from CO2 emissions to economic growth; energy consumption to CO2 emissions and bi-directional causality between energy consumption and economic growth. This suggests that any effort to lower the problem of CO2emissions by reducing energy consumption could negatively affect economic growth. We therefore, suggested that renewable source of energy such as solar and wind could be explored and considered as an alternative source of energy since Nigeria is well endowed with solar energy. This will assist in reducing CO2 emissions and at the same time sustaining long run economic growth