Does the Level of Economic Growth Influence Environmental Quality in Nigeria: A Test of Environmental Kuznets Curve (EKC) Hypothesis?

Abstract

The study presents evidence that carbon emission in Nigeria is not driven by economic growth; rather, it is influenced by financial developments. We find a statistically significant negative impact of FDI stock on per capita CO2 in Nigeria during 1980-2008. The other financial developments indicator, the stock value traded, has a significant and positive impact on carbon emissions. In addition, the results show the non-existence of the inverted-U Environmental Kuznets Curve in Nigeria, judging by the signs and significance of the coefficients of per capita growth and its square.