Keyword : Climate change, Economic, Welfare, GHG and Carbon emission
Author(s) : Daniel Chibueze ONYEJIUWA, Ph.D. And Gilbert Deinde IFARAJIMI, Ph.D, FCA
Abstract :
Climate change had been a front burner issues and disturbing vices at the world unions and regional conferences, diplomatic contentions and international organisations, most especially, developing countries are prone to its danger. Therefore, this paper assessed the impact of climate change on the economic welfare of Nigeria. Four endogenous variables were used to represent economic welfare such as per capita income growth rate, Human Development Index, Gross Fixed Capital Formation and Savings rate, while carbon dioxide damage, forest depletion, natural resource depletion and carbon dioxide emission considered as climate change variables. Annual data from 1981 to 2019 was sourced from World Development Indicators, 2019. Fully Modified OLS estimator and Granger Causality test were adopted to estimate the impact and causality, respectively, of climate change on economic welfare in Nigeria. The paper discovered that climate change contributed negatively to the per capita incomegrowth rate, human development index and savings rate in Nigeria. Most especially, carbon dioxide emission showed a huge negative impact on economic welfare in Nigeria. Therefore, government environmental agencies should adopt policy measure that will reduce forest depletion, carbon dioxide damage and the degree of carbon dioxide emission in Nigeria by increasing the cost of negative externality.
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