Sustainable development: Implications for energy policy in Nigeria

Abstract

As Nigeria’s population grows significantly, it is expected that progress in physical infrastructures and environmental resources are utilized at a pace that can support population growth. Since energy resources, their uses and environmental impact are critical to the process of economic development, any quest for sustainability requires appropriate energy policy responses. In this regard, this paper explores the prospects for sustainable development given energy resource utilization in Nigeria. Specifically using the General Method of Moments and the Impulse-Response functions, the study articulated the environment-economic relationship with regard to energy resource utilization. The findings of the study revealed an asymmetric flow of energy resources to the Nigerian economy given the mixed results. Thus, the paper proffers policy instruments such as low cost energy and state-market approaches which can restore some sense of inter-temporal balance and advance the course of sustainability.