TOWARDS NET-ZERO ENERGY 2060: Fiscal Vulnerability and Energy Transition in Nigeria
- Chukwunonso Ekesiobi
- Precious Muhammed Emmanuel
- David Ejimofor Chukwuemeka
- Obukohwo Oba Efayena
- Clement Izuchukwu Igbanugo
- ( paper pages. 365 - 405 )
Abstract
Nigeria's journey
towards net-zero energy emissions by 2060 is emblematic of the contemporary
global narrative. Moreover, the interplay between fiscal dynamics and energy
transition strategies plays a major role in a prosperous economy and a
sustainable future. Specifically, grounded in the Porter-Drewello energy
transition framework, this research investigates the nexus between fiscal
vulnerability and energy transition in Nigeria. Employing the quantile
regression methodology and vector autoregressive models, the research dissects
the impact of fiscal vulnerability on energy transition, scrutinizing quarterly
data from 2000q1 to 2021q4. The findings delineate that fiscal vulnerability
exerts a significant negative effect on energy transition, particularly at
median and higher quantiles. Additionally, the interplay between fiscal
vulnerability and institutional quality is explored, emphasizing the role of
institutional quality as a catalyst for renewable energy integration in the
quest for energy transition. Key policy recommendations of the study underscore
the role of strong fiscal institutions, renewable energy investments, energy
efficiency, and institutional frameworks in mitigating the negative
effects of fiscal vulnerability on energy transition
Citation
Chukwunonso Ekesiobi, Precious Muhammed Emmanuel, David Ejimofor Chukwuemeka, Obukohwo Oba Efayena, Clement Izuchukwu Igbanugo.
2024.
"TOWARDS NET-ZERO ENERGY 2060: Fiscal Vulnerability and Energy Transition in Nigeria"
The Nigerian Journal of Economic and Social Studies,
66 (3): 365 - 405.
JEL Classification
H12, O13, Q48
