International Conference on Economics, Finance & Business, Prague

ENERGY EFFICIENCY AND ECONOMIC GROWTH IN NIGERIA: A LONG-RUN PERSPECTIVE USING TIME SERIES ANALYSIS AND STOCHASTIC FRONTER APPROACH.

IBRAHIM AMINU JAMIU, SHAMWIL MOHAMMED, ABDULLAHI IBRAHIM

Abstract:

This study examined the nexus between energy efficiency and economic growth in Nigeria, leveraging a long-run perspective through time series analysis from 1980 to 2023. Motivated by the growing importance of sustainable energy utilization in addressing climate change and fostering economic growth, this research employed advanced econometric techniques to explore the trends, causality, and dynamics of energy efficiency in Nigeria's economy. By moving beyond traditional energy intensity measures, the study utilized a frontier-based approach to provide a more accurate estimation of energy demand efficiency. Additionally, the research addressed the critical gap in understanding how energy efficiency improvements can influence economic growth in developing economies like Nigeria. The findings contributed to policy formulation, emphasizing the role of energy efficiency in achieving economic sustainability, mitigating greenhouse gas emissions, and promoting inclusive growth and development. This study held significant implications for aligning Nigeria’s energy policies with global sustainability goals while ensuring equitable economic progress.

Keywords: Energy Efficiency, Economic Growth, Time Series, Sustainability.