The effect of transitioning to renewable energy consumption on the Nigerian oil and gas exports: an ARDL approach

Bukar Zanna Waziri, Aminu Hassan, Reza Kouhy

Research output: Contribution to journalArticle

1 Citation (Scopus)
21 Downloads (Pure)

Abstract

Purpose
Net energy importing countries (NEICs) pursue strategic policies to reduce the consumption of energy from conventional sources and increase that of renewable energy to attain energy security and sustainable development. However, net energy exporting countries (NEECs) rely substantially on the proceeds realised from oil and gas exports to mainly NEICs to finance government activities. This paper aims to investigate the effect of increased consumption of renewable energy in developed NEICs on the Nigeria’s oil and gas exports.

Design/methodology/approach
The study was undertaken by analysing macro-economic annual time-series data set (1980-2014) using autoregressive distributed lag (ARDL) bounds testing approach.

Findings
Both the short-run and the long-run results of the ARDL modelling reveal that renewable energy consumption in developed NEICs is affecting Nigeria’s oil and gas exports negatively, thereby causing significant decrease in the amounts of revenue being generated therefrom.

Research Limitations/implications
Like most empirical studies, the conduct of this research has encountered some challenges. Thus, the use of rather small sample in terms of period covered (1980-2014), annual frequency of data and focus on one NEEC (Nigeria) are the key limitations of this paper. While the first two challenges were dealt with by using ARDL, future research can focus on other NEECs to extend the study.

Practical Implications
The findings have several policy implications, including the need for Nigeria to focus on developing internal market trajectories to increase domestic utilisation of its conventional energy rather than depending on external markets. The results also suggest the need for public policymakers to develop a strategic plan that will effectively address the external economic threat arising from the influence of global energy transition.

Originality/value
To the best of the authors’ knowledge, this paper represents the first effort to empirically examine the effect of renewable energy consumption by developed NEICs on the Nigeria’s oil and gas exports. The paper contributes to the literature by providing insight into and documenting evidence that the world is taking transitioning to cleaner energy sources very seriously.
Original languageEnglish
Pages (from-to)507-524
Number of pages18
JournalInternational Journal of Energy Sector Management
Volume12
Issue number4
Early online date31 Jul 2018
DOIs
Publication statusPublished - 2018

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Energy utilization
Gases
Energy security
Economics
Finance
Macros
Sustainable development
Time series
Trajectories
Oils
Distributed lag
Renewable energy
Gas
Oil
Energy
Energy consumption
Testing
Exporting
Nigeria

Cite this

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title = "The effect of transitioning to renewable energy consumption on the Nigerian oil and gas exports: an ARDL approach",
abstract = "PurposeNet energy importing countries (NEICs) pursue strategic policies to reduce the consumption of energy from conventional sources and increase that of renewable energy to attain energy security and sustainable development. However, net energy exporting countries (NEECs) rely substantially on the proceeds realised from oil and gas exports to mainly NEICs to finance government activities. This paper aims to investigate the effect of increased consumption of renewable energy in developed NEICs on the Nigeria’s oil and gas exports.Design/methodology/approachThe study was undertaken by analysing macro-economic annual time-series data set (1980-2014) using autoregressive distributed lag (ARDL) bounds testing approach.FindingsBoth the short-run and the long-run results of the ARDL modelling reveal that renewable energy consumption in developed NEICs is affecting Nigeria’s oil and gas exports negatively, thereby causing significant decrease in the amounts of revenue being generated therefrom.Research Limitations/implicationsLike most empirical studies, the conduct of this research has encountered some challenges. Thus, the use of rather small sample in terms of period covered (1980-2014), annual frequency of data and focus on one NEEC (Nigeria) are the key limitations of this paper. While the first two challenges were dealt with by using ARDL, future research can focus on other NEECs to extend the study.Practical ImplicationsThe findings have several policy implications, including the need for Nigeria to focus on developing internal market trajectories to increase domestic utilisation of its conventional energy rather than depending on external markets. The results also suggest the need for public policymakers to develop a strategic plan that will effectively address the external economic threat arising from the influence of global energy transition.Originality/valueTo the best of the authors’ knowledge, this paper represents the first effort to empirically examine the effect of renewable energy consumption by developed NEICs on the Nigeria’s oil and gas exports. The paper contributes to the literature by providing insight into and documenting evidence that the world is taking transitioning to cleaner energy sources very seriously.",
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The effect of transitioning to renewable energy consumption on the Nigerian oil and gas exports : an ARDL approach. / Waziri, Bukar Zanna; Hassan, Aminu; Kouhy, Reza.

In: International Journal of Energy Sector Management, Vol. 12, No. 4, 2018, p. 507-524.

Research output: Contribution to journalArticle

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T1 - The effect of transitioning to renewable energy consumption on the Nigerian oil and gas exports

T2 - an ARDL approach

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AU - Hassan, Aminu

AU - Kouhy, Reza

PY - 2018

Y1 - 2018

N2 - PurposeNet energy importing countries (NEICs) pursue strategic policies to reduce the consumption of energy from conventional sources and increase that of renewable energy to attain energy security and sustainable development. However, net energy exporting countries (NEECs) rely substantially on the proceeds realised from oil and gas exports to mainly NEICs to finance government activities. This paper aims to investigate the effect of increased consumption of renewable energy in developed NEICs on the Nigeria’s oil and gas exports.Design/methodology/approachThe study was undertaken by analysing macro-economic annual time-series data set (1980-2014) using autoregressive distributed lag (ARDL) bounds testing approach.FindingsBoth the short-run and the long-run results of the ARDL modelling reveal that renewable energy consumption in developed NEICs is affecting Nigeria’s oil and gas exports negatively, thereby causing significant decrease in the amounts of revenue being generated therefrom.Research Limitations/implicationsLike most empirical studies, the conduct of this research has encountered some challenges. Thus, the use of rather small sample in terms of period covered (1980-2014), annual frequency of data and focus on one NEEC (Nigeria) are the key limitations of this paper. While the first two challenges were dealt with by using ARDL, future research can focus on other NEECs to extend the study.Practical ImplicationsThe findings have several policy implications, including the need for Nigeria to focus on developing internal market trajectories to increase domestic utilisation of its conventional energy rather than depending on external markets. The results also suggest the need for public policymakers to develop a strategic plan that will effectively address the external economic threat arising from the influence of global energy transition.Originality/valueTo the best of the authors’ knowledge, this paper represents the first effort to empirically examine the effect of renewable energy consumption by developed NEICs on the Nigeria’s oil and gas exports. The paper contributes to the literature by providing insight into and documenting evidence that the world is taking transitioning to cleaner energy sources very seriously.

AB - PurposeNet energy importing countries (NEICs) pursue strategic policies to reduce the consumption of energy from conventional sources and increase that of renewable energy to attain energy security and sustainable development. However, net energy exporting countries (NEECs) rely substantially on the proceeds realised from oil and gas exports to mainly NEICs to finance government activities. This paper aims to investigate the effect of increased consumption of renewable energy in developed NEICs on the Nigeria’s oil and gas exports.Design/methodology/approachThe study was undertaken by analysing macro-economic annual time-series data set (1980-2014) using autoregressive distributed lag (ARDL) bounds testing approach.FindingsBoth the short-run and the long-run results of the ARDL modelling reveal that renewable energy consumption in developed NEICs is affecting Nigeria’s oil and gas exports negatively, thereby causing significant decrease in the amounts of revenue being generated therefrom.Research Limitations/implicationsLike most empirical studies, the conduct of this research has encountered some challenges. Thus, the use of rather small sample in terms of period covered (1980-2014), annual frequency of data and focus on one NEEC (Nigeria) are the key limitations of this paper. While the first two challenges were dealt with by using ARDL, future research can focus on other NEECs to extend the study.Practical ImplicationsThe findings have several policy implications, including the need for Nigeria to focus on developing internal market trajectories to increase domestic utilisation of its conventional energy rather than depending on external markets. The results also suggest the need for public policymakers to develop a strategic plan that will effectively address the external economic threat arising from the influence of global energy transition.Originality/valueTo the best of the authors’ knowledge, this paper represents the first effort to empirically examine the effect of renewable energy consumption by developed NEICs on the Nigeria’s oil and gas exports. The paper contributes to the literature by providing insight into and documenting evidence that the world is taking transitioning to cleaner energy sources very seriously.

U2 - 10.1108/IJESM-11-2017-0010

DO - 10.1108/IJESM-11-2017-0010

M3 - Article

VL - 12

SP - 507

EP - 524

JO - International Journal of Energy Sector Management

JF - International Journal of Energy Sector Management

SN - 1750-6220

IS - 4

ER -