International Journal of Innovative Social Sciences & Humanities Research 3(2):110-117, April-June 2015
© SEAHI PUBLICATIONS, 2015
ECONOMIC LINKAGES BETWEEN, ENERGY CONSUMPTION AND POVERTY REDUCTION: IMPLICATION ON SUSTAINABLE DEVELOPMENT IN NIGERIA
Innocent OKWANYA1*, OGBU Moses2 &Abdulkareem ALHASSAN3
1 Department of Economics, Federal University Lafia, Nassarawa State, Nigeria
2 Department of Economics University of Jos, Plateau State, Nigeria
3 Department of Economics, Federal University Lafia, Nassarawa State, Nigeria.
The aim of this paper is to investigate the relationship between total energy consumption and poverty rate in Nigeria. To achieve this purpose the study employs ordinary least square regression analysis and the cointegration analysis to test for the long run relationship. The study also use the Granger Causality test to ascertain if energy consumption Granger cause poverty or otherwise. The empirical results show that a long run co-integrated relationship exists between total energy consumption and poverty rate in Nigeria. The long-run co-integrating regression result reveals that if total energy consumption is increased by one percent poverty rate will decrease by 0.33 percent. We also found a strong causal relation which runs from total energy consumption to poverty rate in Nigeria. These findings clearly indicate that energy consumption has a significant impact on poverty rate in Nigeria. The study recommends that there is need for the government to make energy available for the citizens so as to make them self-reliant-thus increasing employment opportunities, income level and reduce poverty rate in Nigeria.
Keywords: Energy; poverty; causality; sustainable development.