Citation :

Foluso Ololade OLUWOLE, Toyin Waliu OTAPO, Paul Obogo USHIE, Wale Henry AGBAJE, James Adeniyi DEMEHIN, "Renewable Investments: A Catalyst For Sustainable Development In Nigeria," International Journal of Economics and Management Studies, vol. 13, no. 5, pp. 1-10, 2026. Crossref, https://doi.org/10.14445/23939125/IJEMS-V13I5P101

Abstract

This study examined whether renewable energy investment, renewable agriculture and forestry investment improve environmental sustainability in Nigeria. Using annual data for 2000–2023, carbon emissions were modelled as a function of renewable energy investment, renewable agriculture and forestry investment, and gross domestic product. After descriptive analysis, correlation analysis, Augmented Dickey–Fuller unit-root testing and Johansen cointegration testing, long-run coefficients are estimated with Fully Modified Ordinary Least Squares, while pairwise Granger-causality tests assessed short-run predictive direction. The results showed that renewable energy investment had a negative and statistically significant relationship with carbon emissions (β = −2.958, p = 0.0011), renewable agriculture and forestry investment had a negative but statistically insignificant relationship (β = −8.58×10⁻⁶, p = 0.2068), and GDP had a positive and significant influence on emissions (β = 7.50×10⁻¹¹, p = 0.0149). No pairwise Granger-causal relationship with carbon emissions was detected at the 5% level. The study contributed investment-based evidence that distinguishes energy investment from agriculture and forestry investment, rather than treating renewable activity as a single consumption indicator. The findings support sustained renewable-energy finance, stronger measurement and targeting of climate-smart agricultural investment, cleaner industrial production, and transition policies that distribute benefits across underserved communities.

Keywords

Carbon Emissions, Fmols, Nigeria, Renewable Agriculture Investment, Renewable Energy Investment, Sustainable Development.

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