Emissions from agricultural sector and financial development in Nigeria: an empirical study

The present paper investigates the impact of financial development on carbon dioxide (CO2) emissions from the agricultural sector in Nigeria. In an agricultural dependent economy such as Nigeria, the nation depends on the agriculture sector to feed its growing population and to foster economic devel...

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Main Authors: Maji, Ibrahim Kabiru, Habibullah, Muzafar Shah, Saari, Mohd Yusof
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2016
Online Access:http://psasir.upm.edu.my/id/eprint/51038/
http://psasir.upm.edu.my/id/eprint/51038/1/Emissions%20From%20Agricultural%20Sector%20and%20Financial%20Development%20in%20Nigeria%20An%20Empirical%20Study.pdf
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author Maji, Ibrahim Kabiru
Habibullah, Muzafar Shah
Saari, Mohd Yusof
author_facet Maji, Ibrahim Kabiru
Habibullah, Muzafar Shah
Saari, Mohd Yusof
author_sort Maji, Ibrahim Kabiru
building UPM Institutional Repository
collection Online Access
description The present paper investigates the impact of financial development on carbon dioxide (CO2) emissions from the agricultural sector in Nigeria. In an agricultural dependent economy such as Nigeria, the nation depends on the agriculture sector to feed its growing population and to foster economic development. However, in this study, we consider CO2 emission from the agriculture sector to be the indicator for the environmental quality. We posit that like any other developing economy, there is a role play by the financial sector to promote growth and progress in enhancing economic development. The pursuit for economic development will ultimately result in environmental pollution. We employ the Autoregressive Distributed Lag (ARDL) approach on annual data spanning from 1971-2011. The control variables included in this study comprises national income, energy consumption, foreign direct investment and population. Our results suggest that all variables exhibit long-run relationship with CO2 emissions from the agricultural sector. Financial development and national income show negative relationship with CO2 emissions from agricultural sector, suggesting that economic development has not taken place at the expense of CO2 emissions. However, the increase in population and foreign direct investment has led to an increase in CO2 emissions from the agricultural sector.
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spelling upm-510382019-10-18T04:03:46Z http://psasir.upm.edu.my/id/eprint/51038/ Emissions from agricultural sector and financial development in Nigeria: an empirical study Maji, Ibrahim Kabiru Habibullah, Muzafar Shah Saari, Mohd Yusof The present paper investigates the impact of financial development on carbon dioxide (CO2) emissions from the agricultural sector in Nigeria. In an agricultural dependent economy such as Nigeria, the nation depends on the agriculture sector to feed its growing population and to foster economic development. However, in this study, we consider CO2 emission from the agriculture sector to be the indicator for the environmental quality. We posit that like any other developing economy, there is a role play by the financial sector to promote growth and progress in enhancing economic development. The pursuit for economic development will ultimately result in environmental pollution. We employ the Autoregressive Distributed Lag (ARDL) approach on annual data spanning from 1971-2011. The control variables included in this study comprises national income, energy consumption, foreign direct investment and population. Our results suggest that all variables exhibit long-run relationship with CO2 emissions from the agricultural sector. Financial development and national income show negative relationship with CO2 emissions from agricultural sector, suggesting that economic development has not taken place at the expense of CO2 emissions. However, the increase in population and foreign direct investment has led to an increase in CO2 emissions from the agricultural sector. Faculty of Economics and Management, Universiti Putra Malaysia 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/51038/1/Emissions%20From%20Agricultural%20Sector%20and%20Financial%20Development%20in%20Nigeria%20An%20Empirical%20Study.pdf Maji, Ibrahim Kabiru and Habibullah, Muzafar Shah and Saari, Mohd Yusof (2016) Emissions from agricultural sector and financial development in Nigeria: an empirical study. International Journal of Economics and Management, 10 (1). pp. 173-187. ISSN 1823-836X http://www.ijem.upm.edu.my/vol10no1/IJEM%20(11)%20Rev1%20Emissions%20from%20agricultural%20sector%20and%20financial%20development%20in%20Nigeria%20An%20empirical%20study%20(1).pdf
spellingShingle Maji, Ibrahim Kabiru
Habibullah, Muzafar Shah
Saari, Mohd Yusof
Emissions from agricultural sector and financial development in Nigeria: an empirical study
title Emissions from agricultural sector and financial development in Nigeria: an empirical study
title_full Emissions from agricultural sector and financial development in Nigeria: an empirical study
title_fullStr Emissions from agricultural sector and financial development in Nigeria: an empirical study
title_full_unstemmed Emissions from agricultural sector and financial development in Nigeria: an empirical study
title_short Emissions from agricultural sector and financial development in Nigeria: an empirical study
title_sort emissions from agricultural sector and financial development in nigeria: an empirical study
url http://psasir.upm.edu.my/id/eprint/51038/
http://psasir.upm.edu.my/id/eprint/51038/
http://psasir.upm.edu.my/id/eprint/51038/1/Emissions%20From%20Agricultural%20Sector%20and%20Financial%20Development%20in%20Nigeria%20An%20Empirical%20Study.pdf