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2018 | 3 | nr 1 | 55--78
Tytuł artykułu

Determinants of Environmental Quality in Nigeria: Assessing the Role of Financial Development

Treść / Zawartość
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
In this study, we analyze the determinants of environmental quality in Nigeria, focusing on the role of financial development. It is a time series analysis covering the period from 1981 to 2016. The study uses the ARDL bounds testing approach to analyze data on urbanization, per capita income, environmental degradation, energy consumption, trade intensity, and capital investment. We generate the environmental degradation index using principal component analysis (PCA). Empirical results suggest that income, financial development, energy consumption, and trade are significant in explaining environmental quality, whereas investment and urbanization are insignificant in the model. Moreover, we find no causality between the capital investment, financial development, and environmental quality, although urbanization and income unidirectionally cause environmental degradation. Also, there exists a bidirectional causality between energy consumption and environmental degradation. Therefore, to ensure efficient credit allocation to low carbon emitting firms, financial sector operators should adequately screen investment proposals before committing funds to them. (original abstract)
Rocznik
Tom
3
Numer
Strony
55--78
Opis fizyczny
Twórcy
  • University of Lagos, Nigeria
  • University of Lagos, Nigeria
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Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.ekon-element-000171541200

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