Greenhouse Gas Emission Determinants in Nigeria: Implications for Trade, Climate Change Mitigation and Adaptation Policies

Abstract

This study investigated and analyzed the determinants of Carbon Dioxide (CO2) emission in Nigeria. The study relied on secondary data from World Bank and Central Bank of Nigeria covering 40 years (1970-2009). The data were analyzed using Zellner’s Seemingly Unrelated Regression (SURE) model. The results of the analysis show that fossil energy demand or consumption, rents from forestry trade, agricultural land area expansion and farm technology were significant determinants of greenhouse gas (GHG) emission in the study area. On the other hand, the second equation indicated that fossil fuel energy demand was exogenously determined by economic growth rate (proxied by GDP growth rate) and farm technology applied in the country. It was recommended that Nigeria should put in place policies that will tax companies or firms emitting GHGs and utilize such tax proceeds for research and building the capacities of farmers to adapt to deleterious effect of climate change in the country and continent. The development of existing and new technologies for adapting to climate change and variability, building of environmental consciousness of Nigerians through curriculum restructuring and provision of weather information services by the Nigerian governments and their agencies to enable farmers plan against weather uncertainty and risks were also recommended.