Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDL

The study aimed at examining the asymmetric effect of crude oil price on the quality of environment in Nigeria. The study utilizes the time series form of annual data from 1970 to 2019 and applies the model of NARDL (Non-Linear ARDL) to determine the short-run and long-run asymmetries. The results r...

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Main Authors: Aminu Hassan Jakada, Bello Alhaji Ibrahim, Ismail Aliyu Danmaraya, Aminu Muhammad Fagge, Abdulnasir T. Yola
Format: Article
Language:English
Published: University of Guilan 2023-07-01
Series:Caspian Journal of Environmental Sciences
Subjects:
Online Access:https://cjes.guilan.ac.ir/article_6925_5deeb302e938da1e372a66c2dd6d6b00.pdf
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author Aminu Hassan Jakada
Bello Alhaji Ibrahim
Ismail Aliyu Danmaraya
Aminu Muhammad Fagge
Abdulnasir T. Yola
author_facet Aminu Hassan Jakada
Bello Alhaji Ibrahim
Ismail Aliyu Danmaraya
Aminu Muhammad Fagge
Abdulnasir T. Yola
author_sort Aminu Hassan Jakada
collection DOAJ
description The study aimed at examining the asymmetric effect of crude oil price on the quality of environment in Nigeria. The study utilizes the time series form of annual data from 1970 to 2019 and applies the model of NARDL (Non-Linear ARDL) to determine the short-run and long-run asymmetries. The results revealed that positive shocks in crude oil price reduces the amount of carbon emissions thereby enhancing the quality of the environment in the long run, while negative shock increases the amount of carbon emission and hence deteriorate the quality of the environment. In the short the positive shock increases the amount of carbon emissions while the negative shocks reduces the carbon emissions and also improve the quality of the environment. Nonetheless, the magnitude and sign of positive as well as negative shocks of crude oil price are essential in environmental management policies. Henceforth, on the basis of the sign as well as magnitude, the study recommends for more subsidy on clean energy as well as formulation of a favorable form of policies for the implementation of renewable form of energy such as solar by residential consumers and industries particularly during the period of low crude oil price.
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issn 1735-3033
1735-3866
language English
publishDate 2023-07-01
publisher University of Guilan
record_format Article
series Caspian Journal of Environmental Sciences
spelling doaj-art-527281366cbf40bc891f41fdd0d07d252024-12-20T22:27:20ZengUniversity of GuilanCaspian Journal of Environmental Sciences1735-30331735-38662023-07-0121349350710.22124/cjes.2023.69256925Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDLAminu Hassan Jakada0Bello Alhaji Ibrahim1Ismail Aliyu Danmaraya2Aminu Muhammad Fagge3Abdulnasir T. Yola4Department of Economics and Development Studies, Federal University Dutse, Jigawa State, NigeriaDepartment of Economics, Borno State University, Borno State, NigeriaDepartment of Economics, Yusuf Maitama Sule University Kano, Kano State, NigeriaDepartment of Economics and Development Studies, Federal University Dutse, Jigawa State, NigeriaDepartment of Economics and Development Studies, Federal University Dutse, Jigawa State, NigeriaThe study aimed at examining the asymmetric effect of crude oil price on the quality of environment in Nigeria. The study utilizes the time series form of annual data from 1970 to 2019 and applies the model of NARDL (Non-Linear ARDL) to determine the short-run and long-run asymmetries. The results revealed that positive shocks in crude oil price reduces the amount of carbon emissions thereby enhancing the quality of the environment in the long run, while negative shock increases the amount of carbon emission and hence deteriorate the quality of the environment. In the short the positive shock increases the amount of carbon emissions while the negative shocks reduces the carbon emissions and also improve the quality of the environment. Nonetheless, the magnitude and sign of positive as well as negative shocks of crude oil price are essential in environmental management policies. Henceforth, on the basis of the sign as well as magnitude, the study recommends for more subsidy on clean energy as well as formulation of a favorable form of policies for the implementation of renewable form of energy such as solar by residential consumers and industries particularly during the period of low crude oil price.https://cjes.guilan.ac.ir/article_6925_5deeb302e938da1e372a66c2dd6d6b00.pdfoil priceenvironmental qualitynon-linear ardl
spellingShingle Aminu Hassan Jakada
Bello Alhaji Ibrahim
Ismail Aliyu Danmaraya
Aminu Muhammad Fagge
Abdulnasir T. Yola
Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDL
Caspian Journal of Environmental Sciences
oil price
environmental quality
non-linear ardl
title Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDL
title_full Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDL
title_fullStr Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDL
title_full_unstemmed Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDL
title_short Asymmetric effect of crude oil price on the quality of environment in Nigeria: An application of non-linear ARDL
title_sort asymmetric effect of crude oil price on the quality of environment in nigeria an application of non linear ardl
topic oil price
environmental quality
non-linear ardl
url https://cjes.guilan.ac.ir/article_6925_5deeb302e938da1e372a66c2dd6d6b00.pdf
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