Effect of demographic factors and economic development on carbon intensity in Nigeria: an insight into the environmental Kuznets curve hypothesis

Main Article Content

Supper Roland Okijie
Ubong Edem Effiong


This paper sought to examine the effect of urbanisation, population growth and economic development on carbon intensity in Nigeria from 1961 to 2014. The study utilised secondary data from the World Bank Development Indicators. The data were analysed using ordinary least squares regression, vector autoregressive model, and threshold regression. Findings from the study revealed that economic development had an inverse and significant effect on carbon intensity in line with the prediction of the Environmental Kuznets Curve. Meanwhile, population growth and urbanisation exerted a positive and significant effect on carbon intensity in Nigeria. The VAR regression result indicated that urbanisation, carbon intensity, and economic development were strongly endogenous in predicting themselves. The threshold regression revealed that the optimal urbanisation level that will not propel carbon intensity in Nigeria is 14.444%. As such, rural development policies should be encouraged to curb massive rural-urban migration, which can drive up the degree of urbanisation in Nigeria. 


Download data is not yet available.

| Abstract views: 99 | PDF Downloads: 116 |

Article Details

How to Cite
Okijie, S. R. ., & Effiong, U. E. . (2021). Effect of demographic factors and economic development on carbon intensity in Nigeria: an insight into the environmental Kuznets curve hypothesis. Law, Business and Sustainability Herald, 1(2), 16–33. https://doi.org/10.46489/lbsh.2021-1-2-2
Author Biographies

Supper Roland Okijie, University of Uyo

Supper Roland Okijie, Department of Sociology and Anthropology, University of Uyo, P.M.B. 1017, Uyo, Akwa Ibom State, Nigeria, ORCID: https://orcid.org/0000-0001-6313-8881

Ubong Edem Effiong, University of Uyo

Ubong Edem Effiong, Department of Economics, University of Uyo, P.M.B. 1017, Uyo, Akwa Ibom State, Nigeria, e-mail: ubongeffiong3@gmail.com (corresponding author), ORCID: https://orcid.org/0000-0003-4677-1268


Ali, R., Bakhsh, K. and Yasin, M. A. (2019). Impact of urbanization on CO2 emissions in emerging economy: Evidence from Pakistan. Sustainable Cities Society, 48, 101553.

Aruga, K. (2019). Investigating the Energy-Environmental Kuznets Curve Hypothesis for the Asia-Pacific Region. Sustainability, 11, 2395.

Atasoy, B. S. (2017). Testing the environmental Kuznets curve hypothesis across the U.S.: Evidence from panel mean group estimators. Renewable Sustainable Energy Review, 77, 731–747.

Bhattacharya, M., Churchill, S. A. and Paramati, S. R. (2017). The dynamic impact of renewable energy and institutions on economic output and CO2 emissions across regions. Renewable Energy, 111, 157–167.

Bilgili, F., Koçak, E. and Bulut, Ü. (2016). The dynamic impact of renewable energy consumption on CO2 emissions: A revisited Environmental Kuznets Curve approach. Renewable Sustainable Energy Review, 54, 838 – 845.

Boutabba, M. A. (2014). The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy. Economic Modelling, 40, 33 – 41.

Cohen, M. A., Fenn, S. A., & Konar, F. S. (1997). Environmental and financial performance: Are they related? Journal of Public Affairs, 1-16.

Grossman, G. M., and Krueger, A. B. (1991). Environmental impacts of a North American free trade agreement. National Bureau of Economic Research, Cambridge, MA, USA: MIT Press.

Jain, M., Sharma, G. D., & Srivastava, M. (2019). Can sustainable investment yield better financial returns: A comparative study of ESG indices and MSCI indices. Risks, 7(1), 15. Available at: https://doi.org/10.3390/risks7010015

Kaika, D., and Zervas, E. (2013). The environmental Kuznets curve (EKC) theory – Part A: Concept, causes and the CO2 emissions case. Energy Policy, 62, 1392 – 1402.

Kathiravan, C., Selvam, M., Maniam, B., Venkateswar, S., & Sigo, M. O. (2020). Does temperature influence the carbon index? Evidence from India. Journal of Public Affairs, 21, e21171-21178. Available at: 10.1002/pa.2117.

Koilo, V. (2019). Evidence of the Environmental Kuznets Curve: Unleashing the opportunity of industry 4.0 in emerging economies. Journal of Risk Financial Management, 12, 122.

Li, S. and Ma, Y. (2014). Urbanization, economic development and environmental change. Sustainability, 6, 5143-5161. DOI:10.3390/su6085143

Liu, X. and Bae, J. (2018). Urbanization and industrialization impact of CO2 emissions in China. Journal of Cleaner Production, 172, 178 – 186.

Maneejuk, N., Ratchakom, S., Maneejuk, P., and Yamaka, W. (2020). Does the environmental Kuznets curve exist? An international study. Sustainability, 12(9117), 1 – 22. doi:10.3390/su12219117

Martine, G. (1996). Population and environment in the current development scenario. Harvard Centre for Population and Development Studies, Working Paper 96.02.

Mikayilov, J. I., Galeotti, M. and Hasanov, F. J. (2018). The Impact of Economic Growth on CO2 Emissions in Azerbaijan; No. 102; IEFE, Centre for Research on Energy and Environmental Economics and Policy, Universita’Bocconi: Milano, Italy.

Moutinho, V., Varum, C. and Madaleno, M. (2017). How economic growth affects emissions? An investigation of the environmental Kuznets curve in Portuguese and Spanish economic activity sectors. Energy Policy, 106, 326 – 344.

Nag, B., & Parikh, J. (2000). Indicators of carbon emission intensity from commercial energy use in India. Energy Economics, 22(4), 441- 461. Available at: https://doi.org/10.1016/s0140-9883(99)00032-8

Neenu, C. and Nishad, T. M. (2021). Carbon reduction and sustainable investment: A way to sustainable development. Energy Economics Letters, 8(2), 134 – 144. DOI: 10.18488/journal.82.2021.82.134.144

Pal, D. and Mitra, S. K. (2017). The environmental Kuznets curve for carbon dioxide in India and China: Growth and pollution at crossroad. Journal of Policy Model, 39, 371–385.

Pata, U. K. (2018). Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: Testing EKC hypothesis with structural breaks. Journal of Cleaner Production, 187, 770 – 779.

Rai, M. S. (2017). Impact of urbanization on environment. International Journal on Emerging Technologies, 8(1), 127 – 129.

Saidi, K. and Omri, A. (2020). The impact of renewable energy on carbon emissions and economic growth in 15 major renewable energy-consuming countries. Environmental Resources, 186, 109567.

Shahbaz, M., Solarin, S. A. and Ozturk, I. (2016). Environmental Kuznets Curve hypothesis and the role of globalization in selected African countries. Ecological Indicators, 67, 623 – 636.

Souza, C. F. F. (2019). Can sustainable investments outperform traditional benchmarks? Evidence from global stock market. Business Strategy and the Environment, 29(2), 1-6.

Stern, D. I. (2004). The Rise and Fall of the Environmental Kuznets Curve. World Development, 32, 1419 – 1439.

Wang, Q., Su, M., and Li, R. (2018). Toward to economic growth without emission growth: The role of urbanization and industrialization in China and India. Journal of Cleaner Production, 205, 499-511. Available at: https://doi.org/10.1016/j.jclepro.2018.09.034

Wang, Z., Zhang, B., and Liu, T. (2016). Empirical analysis on the factors influencing national and regional carbon intensity in China. Renewable and Sustainable Energy Reviews, 55, 34-42. Available at: https://doi.org/10.1016/j.rser.2015.10.077

White, M. J., Andrzejewski, C. S., Awusabo-Asare, K., Kumi-Kyereme, A., Nixon, S. W., Buckley, B. A., Granger, S. L., and Reed, H. E. (2009). Urbanization and environmental quality: insights from Ghana on sustainable policies. In: de Sherbiniin, A., A. Rahman, A. Barbieri, J.C. Fotso, and Y. Zhu (eds.), Urban Population-Environment Dynamics in the Developing World: Case Studies and Lessons Learned. Paris, Committee for International Cooperation in National Research in Demography (CICRED) (316 pages). Available at http://www.populationenvironmentresearch.org/workshops.jsp#W2007

Zafar, A., Ullah, S., Majeed, M. T. and Yasmeen, R. (2020). Environmental pollution in Asian economies: Does the industrialisation matter? OPEC Energy Review, 44, 227 – 248.