Foreign investment and CO2 discharge in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VII, July 2021 | ISSN 2454–6186

Foreign investment and CO₂ discharge in Nigeria

Muhammad Bilyaminu Ado
Yusuf Maitama Sule University, Kano

Abstract
This study examines the influence of foreign investment, economic performance, financial progress and energy use in Nigeria, by employing ARDL technique form 1980 to 2019. The cointegration test confirmed the long run linkage among the model’s variables. The short run estimate indicates that foreign investment, economic performance, financial progress and energy positively influence the level of CO₂ discharge in Nigeria. The estimate form long-run analysis also reveals that foreign investment, GDP, financial progress and energy resources accelerate the capacity of CO₂ explosion. Hence, the study suggests that government and policymakers should design policies on foreign investment with aim to decouple the level of CO₂ discharge. This could be through the use of efficient energy and low emission technology.

Keywords: CO2 discharge, foreign investment, GDP, ARDL, Nigeria

1.Introduction

The growth of CO₂ discharge today became an issue of great concern in the world (Shahzad et al., 2017). Several commitments of the global institutions like Kyoto Protocol conference for climate change and United Nations sustainable development initiatives have pronounced more need on CO2 mitigation (IPCC, 2018; IPCC, 2014). It is argued that about 36 billion kilo tonnes of CO₂ is been discharged in a decade and it is estimated to rise by the year 2035 (Global Carbon Project, 2018). Increase in the global heat have changed the environmental settings which resulted to the low agricultural production, income, poverty and the reduced sea level water (NS Yahaya, 2020). This condition is directly link with low human, social and economic progress especially in developing nations (Danlami et al 2018). Based on the statistics from the world data, developing economies nowadays contributed to over 67 percent of the world’s emission explosion with more than 80 percent vulnerability rate (WDI, 2019). Moreover, several factors such as foreign investment, trade, financial resources, energy use and population growth are among the determinants of CO₂ explosion (Sehrawat et al., 2015).
Nigeria found among the nations in Africa with high amount of CO₂ discharge (WDI, 2019). It is revealed that from 2010 to 2020, over 2 million kilo tonnes of CO2 were discharge, the amount that is capable of upsetting the climate nature of the entire region (WDI, 2019). Emission discharge from the industrial use, nonrenewable energy resources have increased

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