Research Article
Impact of Energy Consumption from Renewable Energy Sources on Economic Growth: Evidence from Nigeria
Ebube Orisa*
,
Anthony Ibe,
Alwell Nteegah
Issue:
Volume 13, Issue 4, December 2024
Pages:
138-151
Received:
25 August 2024
Accepted:
18 September 2024
Published:
29 October 2024
Abstract: This study examines the impact of renewable energy consumption and electricity tariff on the economy of Nigeria. The study considers the casual relationship and vector decomposition between various renewable energy sources (solar, hydro and biomass), electricity price and Gross domestic product (GDP) using an unrestricted vector error correction model (VECM). In addition, other robust econometric techniques were applied to the time series of GDP, electricity price and energy consumption from renewable energy sources from 1980 to 2021. The findings indicated a 1% increase in biomass consumption causes increase in GDP by 0.14% in the long-run. Mixed result in the short-run with the difference in the log value of the current lag of solar and bio electricity consumption having positive impact on GDP. The coefficient of the Error Correction Model (ECM) was negative (-0.49) and statistically significant indicating that short-run change from the long-run equilibrium is corrected by 49% annually. Unidirectional causality from GDP to solar electricity consumption. Solar, hydro, biomass and electricity price explain 1.4%, 0.4% 2.2% & 12% respectively of fluctuations in GDP in the long-run. The study results demonstrates that regulations need to be put in place to control the adverse effect of consuming biomass on the environment which could cause mixed impact on gross domestic product in the short run whereas, policies to foster development of solar projects could impact positively on GDP and alleviate the electricity supply deficiency in Nigeria.
Abstract: This study examines the impact of renewable energy consumption and electricity tariff on the economy of Nigeria. The study considers the casual relationship and vector decomposition between various renewable energy sources (solar, hydro and biomass), electricity price and Gross domestic product (GDP) using an unrestricted vector error correction mo...
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Research Article
The Role and Prospect of Emission Trading in the Optimal Allocation of Environmental Resources
Haixu Zhang,
Chunlai Jiang,
Jinying Huang,
Yaolin Wang,
Zhiguo Duan*
Issue:
Volume 13, Issue 4, December 2024
Pages:
152-159
Received:
22 October 2024
Accepted:
13 November 2024
Published:
21 November 2024
DOI:
10.11648/j.jenr.20241304.12
Downloads:
Views:
Abstract: The emission trading system is an important institutional innovation which effectively uses market mechanisms to improve the efficiency of environmental governance, and plays an important role in exploiting the potential of emission reduction for government and enterprise, which would realize the optimal allocation of environmental resources. The study analyses the design mechanism of emission trading system, the crucial parts including verification of emission rights, paid use for resources, emission trading, reserve and control mechanism, as well as management and incentive policies. Thereby, the current problems of emission trading system in China have been found out, including the deficiency of top-level design, ineffective cohesive mechanism between different systems, inactive trading market, and insufficient supporting policy guarantee policy. Based on the development trend of national policies and the practical problems faced by emission trading, the study proposes four prospects for the emission trading efforts. First, the issuance of guidance documents for deepening the emission trading system at the national level is an important foundation for the development of the emission trading system. Second, convergence between the emission rights trading and the emission permit system is the inevitable trend of the development of the system. Third, working on promoting the construction of a trading system dominated by market mechanisms is the focus of the optimal allocation of resources and environment. Last, establishing and improving relevant supporting mechanisms is an important guarantee for the stable development of the emission rights trading market and the efficient allocation of environmental resources.
Abstract: The emission trading system is an important institutional innovation which effectively uses market mechanisms to improve the efficiency of environmental governance, and plays an important role in exploiting the potential of emission reduction for government and enterprise, which would realize the optimal allocation of environmental resources. The s...
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