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Quantile relationship between financial development, income, price, CO2 emissions and renewable energy consumption: evidence from Nigeria

Quantile relationship between financial development, income, price, CO2 emissions and renewable... One of the solutions to climate change is the adoption and use of renewable energy sources. This understanding has driven Nigerian stakeholders to set a goal of achieving net–zero emissions by 2060. Capitalizing on the limitations of existing literature, this study employs a Quantile–on–Quantile (QQ) and quantile regression approach to investigate the impact of financial development on renewable energy consumption in Nigeria from 1960–2018. In addition, this research uses GDP per capita, energy price, and CO2 emissions as moderating variables to eliminate omitted variable bias. The outcome of the QQ technique showed that financial development supplies mixed shocks (positive and negative) to renewable energy consumption. The negative shocks are highly negative. The quantile regression result also showed that financial development influences renewable energy consumption negatively at the lower quantile (0.10–0.20) and the upper quantile (0.80–0.90). The policy implications are discussed for Nigeria. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Letters in Spatial and Resource Sciences Springer Journals

Quantile relationship between financial development, income, price, CO2 emissions and renewable energy consumption: evidence from Nigeria

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Springer Journals
Copyright
Copyright © The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2023. Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
ISSN
1864-4031
eISSN
1864-404X
DOI
10.1007/s12076-023-00330-2
Publisher site
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Abstract

One of the solutions to climate change is the adoption and use of renewable energy sources. This understanding has driven Nigerian stakeholders to set a goal of achieving net–zero emissions by 2060. Capitalizing on the limitations of existing literature, this study employs a Quantile–on–Quantile (QQ) and quantile regression approach to investigate the impact of financial development on renewable energy consumption in Nigeria from 1960–2018. In addition, this research uses GDP per capita, energy price, and CO2 emissions as moderating variables to eliminate omitted variable bias. The outcome of the QQ technique showed that financial development supplies mixed shocks (positive and negative) to renewable energy consumption. The negative shocks are highly negative. The quantile regression result also showed that financial development influences renewable energy consumption negatively at the lower quantile (0.10–0.20) and the upper quantile (0.80–0.90). The policy implications are discussed for Nigeria.

Journal

Letters in Spatial and Resource Sciences – Springer Journals

Published: Dec 1, 2023

Keywords: Financial development; Renewable energy consumption; Quantile–on–Quantile; Quantile regression; Nigeria; O13; Q40

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