Macroeconomic Determinants of Renewable Electricity Technology Adoption in Nigeria

• Authors: Saibu Olufemi Muibi , Omoju Oluwasola E.

Title variants

PL

Makroekonomiczne determinanty adaptacji technologii odnawialnej elektryczności w Nigerii

• Languages of publication: EN

Abstracts

EN

Renewable electricity technology adoption is an essential part of the measures to mitigate climate change and promote sustainable development. This paper investigates the drivers of and barriers to renewable electricity technology adoption in Nigeria. Specifically, the factors that influence the share of renewable electricity in total electricity consumption in Nigeria is investigated using data from 1981 to 2011 and employing the Johansen cointegration technique and vector error correction method. The results show that there is a long run relationship between renewable electricity consumption and GDP, trade openness, financial development and share of fossil fuel in energy consumption. Trade openness promotes renewable electricity consumption while obsession with economic growth and the lobby of conventional energy sources undermine it in Nigeria. Financial development does not have significant impact on renewable electricity technology adoption in Nigeria. It is recommended that the Nigerian government should pursue policies that not only increase the amount of renewable electricity, but also increase the share of renewables in total electricity consumption.

PL

Przystosowanie technologia odnawialnej elektryczności stanowi zasadniczą część środków na rzecz zapobiegania zmianom klimatycznym oraz promowania zrównoważonego rozwoju. Niniejszy artykuł podejmuje tematykę czynników przyczyniających się do adaptacji technologii odnawialnej elektryczności w Nigerii, a także barier ją hamujących. Omówiono w szczególności czynniki wpływające na udział odnawialnej energii w całkowitej konsumpcji elektryczności w Nigerii na podstawie danych z lat 1981-2011, a także przy zastosowaniu technik kointegracji Johansena oraz metody korekty błędu wektorowego. Wyniki ukazują, że istnieje długoterminowa korelacja pomiędzy konsumpcją odnawialnej elektryczności oraz PKB, otwartością handlu, rozwojem finansowym oraz udziałem paliw kopalnych w konsumpcji energii. Otwartość handlowa promuje konsumpcję odnawialnej elektryczności, jednak w Nigerii osłabia ją obsesja na punkcie wzrostu gospodarczego oraz lobby wokół konwencjonalnych źródeł energii. Rozwój finansowy nie ma znaczącego wpływu na przystosowanie technologii odnawialnej elektryczności w Nigerii. Rekomenduje się, aby nigeryjski rząd kładł nacisk na technologie, które prowadzą do wzrostu nie tylko ilości odnawialnej elektryczności, ale też udziału źródeł odnawialnych w całkowitej konsumpcji elektryczności.

Keywords

EN

renewable technology; electricity consumption; economic development; Nigeria

PL

odnawialne technologie; produkcja elektryczności; rozwój ekonomiczny; Nigeria

• Publisher: Uniwersytet Opolski, Wydział Ekonomiczny
• Journal: Economic and Environmental Studies
• Year: 2016
• Volume: 16
• Issue: 1(37)
• Pages: 65-83

Dates

published

2016-03

Contributors

author

Saibu Olufemi Muibi

• Department of Economics, University of Lagos, Akoka, Lagos, Nigeria

author

Omoju Oluwasola E.

• China Center for Energy Economics Research (CCEER), Xiamen University, PR China

redactor

Cibulskiene Diana

redactor

Paradowska Monika

redactor

Platje Joost (Johannes)

References

• Abur, B.T.; Duvuna, G. A. (2014). Renewable energy resources in Benue State – Nigeria: Estimation and mapping of solar energy potentials. International Journal of Current Engineering and Technology 4(3): 1406-1411.
• Aguirre, M.; Ibikunle, G. (2014). Determinants of renewable energy growth: A global sample analysis. Energy Policy 69: 374-384.
• Beckman, J.; Borchers, A.; Stenberg, P. (2011). The determinants of on-farm renewable energy adoption. Presentation at the Agricultural and Applied Economics Association’s 2011 AAEA & NAREA Joint Annual Meeting, Pittsburgh, Pennsylvania, July 24-26, 2011.
• Bird, L.; Bolinger, M.; Gagliano, T.; Wiser, R.; Brown, M.; Parsons, B. (2005). Policies and market factors driving wind power development in the United States. Energy Policy 33: 1397-1407.
• Brunnschweiler, C.N. (2010). Finance for renewable energy: An empirical analysis of developing and transition economies. Environment and Development Economics 15(3): 241-274.
• Carley, S. (2009). State renewable energy electricity policies: An empirical evaluation of effectiveness. Energy Policy 37: 3071–3081.
• Chang, T. H.; Huang, C. M.; Lee, M. C. (2009). Threshold effect of the economic growth rate on the renewable energy development from a change in energy price: Evidence from OECD countries. Energy Policy 37: 5796-5802.
• Chien, T.; Hu, J.L. (2008). Renewable energy: An efficient mechanism to improve GDP. Energy Policy 36: 3045-3052.
• Emberga, T.T.; Obasi, I.; Omenikolo, A.I.; Nwigwe, C. (2014). Renewable energy potentials and production in Nigeria. Standard Scientific Research and Essays 2(3): 55-59.
• Gan, L.; Eskeland, G.; Kolshus. H. (2007). Green electricity market development: Lessons from Europe and the US. Energy Policy 35: 144-155.
• Gertler, P.; Shelef, O.; Wolfram, C.; Fuchs, A. (2013). How Pro-poor Growth Affects the Demand for Energy. NBER Working Paper Series No. 19092. Cambridge, MA: National Bureau of Economic Research.
• Hong, Y. (2010). Lecture notes on advanced econometrics. Cornell University.
• Huang, M.Y.; Alavalapati, J.; Carter, D.; Langholtz, M. (2007). Is the choice of renewable portfolio standards random? Energy Policy 35: 5571-5575.
• Johnstone, N.; Hascic, I.; Popp, D. (2010). Renewable energy policies and technological innovation: Evidence based on patent counts. Environmental and Resource Economics 45: 133-155.
• Lin, B.; Xie, C. (2014). Reduction potential of co2 emissions in China’s transport industry. Renewable and Sustainable Energy Reviews 33: 689-700.
• Marques, A.C.; Fuinhas, J.A.; Manso, J. R. P. (2010). Motivations driving renewable energy in European countries: A panel data approach. Energy Policy 38: 6877-6885.
• Martinot, E. (2002). Power sector restructuring and environment: Trends, policies and GEF experience. Washington, DC: Global Environment Facility.
• Menz, F.; Vachon, S. (2006). The effectiveness of different policy regimes for promoting wind power: Experience from the States. Energy Policy 34: 1786-1796.
• Mitchell, C.; Sawin, J.; Pokharel, G.R.; Kammen, D.; Wang, Z.; Fifita, S. (2011). Policy, financing and implementation. In: Edenhofer, O.; Pichs-Madruga, R.; Sokona, Y.; Seyboth, K.; Matschoss, P.; Kadner, S.; Zwickel, T.; Eickemeier, P.; Hansen, G.; Schlomer, S.; Stechow von, C. (eds.). IPCC special report on renewable energy sources and climate change mitigation. New York: Cambridge University Press.
• Mohammed, Y.S.; Mustafa, M.W.; Bashir, N.; Mokhtar, A.S. (2013). Renewable energy sources for distributed power generation in Nigeria. A review of the potential. Renewable and Sustainable Energy Reviews 22: 257-268.
• Moomaw, W.; Yamba, F.; Kamimoto, M.; Maurice, L.; Nyboer, J.; Urama, K.; Weir, T. (2011). Introduction. In: Edenhofer, O.; Pichs-Madruga, R.; Sokona, Y.; Seyboth, K.; Matschoss, P.; Kadner, S.; Zwickel, T.; Eickemeier, P.; Hansen, G.; Schlomer, S.; Stechow von, C. (eds.). IPCC special report on renewable energy sources and climate change mitigation. New York: Cambridge University Press.
• Narayan, P. K.; Smyth, R. (2008). Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks. Energy Economics 30: 2331-2341.
• Newsom. C. (2012). Renewable energy potential in Nigeria: Low-carbon approaches to tackling Nigeria’s energy poverty. London: International Institute for Environment and Development (IIED).
• Ogujiuba, K.; Obiechina, M. E. (2011). Financial sector reforms in Nigeria: Issues and challenges. International Journal of Business and Management 6(6): 222-233.
• Olowojaiye, G. (2013). Post-reform financing of grid power plants: A Banker’s concern. In: Adenikinju, A.; Iwayemi, A.; Iledare, W. (eds.). Energy technology and infrastructure for development. Ibadan: Atlantis Books.
• Omojolaibi, J.O. (2012). Financing the alternative: Renewable energy in the Nigerian economy. In: Adenikinju, A.; Iwayemi, A.; Iledare, W. (eds.). Green energy and energy security: Options for Africa. Ibadan: Atlantis Books.
• Omri, A.; Nguyen, D.K. (2014). On the determinants of renewable energy consumption: International evidence. Energy 72: 554-560.
• Perc, M.; Szolnoki, A. (2010). Coevolutionary games – A mini review. Biosystems 99: 109-125.
• Peterson, S. (2007). Greenhouse gas mitigation in developing countries through technology transfer: A survey of empirical evidence. Mitigation and Adaptation Strategies for Global Change 13(3): 283-305.
• Pfeiffer, B.; Mulder, P. (2013). Explaining the diffusion of renewable energy technology in developing countries. Energy Economics 40: 285-296.
• Popp, D.; Hascic, I.; Medhi, N. (2011). Technology and the diffusion of renewable energy. Energy Economics 33(4): 648-662.
• Rafiq, S.; Alam, K. (2010). Identifying the determinants of renewable energy consumption in leading renewable energy investor emerging countries. Paper presented at the 39th Australian Conference of Economists, held 27-29 September, in Sydney.
• Sadorsky, P. (2009a). Renewable energy consumption, CO2 emissions and oil prices in the G7 countries. Energy Economics 31: 456-462.
• Sadorsky, P. (2009b). Renewable energy consumption and income in emerging economies. Energy Policy 37: 4021-4028.
• Saibu, O.M.; Omoju, O.; Nwosa, P.I. (2012). Trade openness and the dynamics of unemployment and poverty incidence in Nigeria: A multivariate cointegration analysis. Nigerian Journal of Economic and Social Studies 54(3): 367-388.
• Salim, R. A.; Shuddhasattwa, R. (2012). Why Do Some Emerging Economies Proactively Accelerate the Adoption of Renewable Energy. Energy Economics 34(4): 1051-1057.
• Shaaban, M.; Petinrin, J. O. (2014). Renewable energy potentials in Nigeria: Meeting rural energy needs. Renewable and Sustainable Energy Reviews 29: 72-84.
• Sovacool, B. (2009). Rejecting renewables: The socio-technical impediments to renewable electricity in the United States. Energy Policy 37: 4500-4513.
• SDSN and IDDRI (2014). Pathways to deep decarbonisation – 2014 interim report. Sustainable Development Solutions Network (SDSN) and Institute for Sustainable Development and International Relations (IDDRI). New York: Columbia University.
• Stadelmann, M.; Castro, P. (2014). Climate policy innovation in the South – Domestic and international determinants of renewable energy policies in developing and emerging countries. Global Environmental Change 29: 413-423.
• Vachon, S.; Menz, F. (2006). The role of social, political, and economic interests in promoting state green electricity policies. Environmental Science and Policy 9: 652-662.
• Van Ruijven, B.; Vuuen van, D. P. (2009). Oil and natural gas prices and greenhouse gas emission mitigation. Energy Policy 37: 4797-4808.
• Van Rooijen, S.; Wees van, M. (2006). Green electricity policies in the Netherlands: An analysis of policy decisions. Energy Policy 34: 60-71.
• Wang, Y. (2006). Renewable electricity in Sweden: An analysis of policy and regulations. Energy Policy 34: 1209-1220.
• Wustenhagen, R.; Bilharz, M. (2006). Green energy market development in Germany: Effective public policy and emerging customer demand. Energy Policy 34: 1681-1696.

Identifiers

ISSN

2081-8319