Green Energy Investment and Environmental Quality in Nigeria: Auto-Regressive Distributed Lag Model
Abstract
The study investigates the impact of green investment on environmental quality in Nigeria. The variables used are investment in energy, renewable energy consumption, and carbon dioxide emissions as an indicator of environmental quality. The analytical tools used are the Augmented Dickey-Fuller unit root test, Auto-Regressive Distributed Lag (ARDL) Bound and ARDL to explore short-term relationships between the variables. The finding revealed that the investment in energy showed a negative relationship with carbon dioxide emissions in the long run, while renewable energy consumption exhibited a similarly negative and significant impact in the short run. The study concludes that green energy investment plays a vital role in enhancing environmental quality. It therefore recommends that the Federal Ministry of Environment should strengthen regulatory frameworks to incentivize investments in energy investment and renewable energy, such as solar and wind power. While implementing strict emission reduction targets across industries, Nigeria’s government should ensure she guarantees environmental sustainability.
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- 2025-07-27 (2)
- 2025-07-10 (1)
