ID | 178839 |
Title Proper | Gas flaring, ineffective utilization of energy resource and associated economic impact in Nigeria |
Other Title Information | Evidence from ARDL and Bayer-Hanck cointegration techniques |
Language | ENG |
Author | Okoro, Emmanuel E |
Summary / Abstract (Note) | This study aligns with Sustainable Development Goal 7 which aims at “ensuring access to affordable, clean energy, reliable, sustainable and modern energy for all”. The Gazetted Flare Gas Regulations 2018 provides a legal framework to support the policy objectives of the Federal Government for the reduction of Green House Gas emissions through the flaring and venting of natural gas. The Regulations provide the legal basis for the implementation of the Nigerian Gas Flare Commercialization Programme. This study investigates the factors contributing to gas flaring activities in Nigeria from 1970 to 2019. Using the autoregressive distributed lag error correction representation and cointegration techniques, findings reveal, among others, that in the long-run: (1) gas flaring activities is persistent; (2) economic growth induces flaring activities; (3) gas prices exert asymmetric impact; (4) gas utilization and fossil fuel are negative predictors. The result shows that gas price contemporaneously exerts positive and statistically significant impact at the 1% level. Gas price contributes 0.187 percent increase to gas flaring while its first lag induces significant reduction in gas flaring by 0.293 percent at 1 percent level of significance. This study also provides sufficient evidence on the persistency of gas flaring activities in Nigeria. |
`In' analytical Note | Energy Policy Vol. 153; Jun 2021: p.112260 |
Journal Source | Energy Policy 2021-06 153 |
Key Words | Economic Growth ; Cointegration ; Fossil Fuel ; Gas Prices ; Autoregressive Distributed Lag ; Gas Flaring ; Gas Utilization |