JOURNAL OF LIAONING TECHNICAL UNIVERSITY
(NATURAL SCIENCE EDITION)
LIAONING GONGCHENG JISHU DAXUE XUEBAO (ZIRAN KEXUE BAN)
辽宁工程技术大学学报（自然科学版）
THE MODERATING EFFECTS OF ENERGY CONSUMPTION ON STANDARD OF LIVING IN NIGERIA: AN AUTOREGRESSIVE DISTRIBUTED LAG APPROACH
Dr. Sola, Oluwagbenle, Dr. F.O.T. Obasuyi, Dr. B. O. Muse, O.B. Omoniyi
Abstract
This study assessed the nexus among energy consumption, electric power consumption, access to electricity and Standard of living in Nigeria between 1990 and 2022. The study adopted Autoregressive Distributed Lags to Co-integration approach as estimation technique. The study verified that access to electricity (ATE), fossil fuel energy consumption (FFE), renewable energy consumption (REC) and electric power consumption (EPC) have significant effect on standard of living (ACE) in the short run and long run respectively. In addition, the R2 value of 0.83 indicates that all the macroeconomic variables of interest in the study explain about 83% of the variation in standard of living (ACE) in Nigeria. Evidence from the study also confirmed the existence of a long-run nexus among access to electricity, fossil fuel energy consumption, renewable energy consumption, electric power consumption and standard of living in Nigeria. The causality result attests that there is a unidirectional causal link between access to electricity and standard of living. From the findings, the study concludes that government should improve on supply of energy as this development will go a long way in facilitating access to electricity consumption among Nigerians as this step will unequivocally improve the standard of living of Nigerians.
Keywords: Standard of Living, Access to Electricity, Fossil Fuel Energy Consumption, Renewable Energy Consumption and Electric Power Consumption.
JEL Classification: Q42, Q43.