Asymmetric role of energy sources on economic growth of Nigeria: Evidence from nonlinear approaches

Nigeria has plentiful sources of renewable energies that are yet to be efficiently utilised, despite the country committing to net-zero emissions by 2060, declared at the 26th United Nations Climate Change Conference in 2021, which necessitates lower consumption of fossil fuels. However, this commitment may divert the country from ending poverty as the main goal of sustainable development. This study seeks to identify the asymmetric effects of renewable and non-renewable sources of energy used in electricity generation, along with CO2 emissions on the economic growth of Nigeria through asymmetric approaches. The findings indicate that Nigeria should mainly pursue policies concentrating on increased consumption of non-renewable energies in the short run and more renewable energy in the long run to achieve higher economic growth. Furthermore, the long run causality results approving the only feedback relationship existing between renewable energy and economic growth, paves the way for Nigeria so that over the time the country will be able to significantly increase the share of renewable energy through which it can achieve a higher level of economic growth and approach its target of net-zero emissions by 2060, both of which are the main goals of sustainable development.