Impact of Gasoline and Renewable Energy Consumption on Manufacturing Sector Output in Nigeria: New Evidence From ARDL Model
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This research examined how gasoline and renewable energy use affects output in Nigeria’s manufacturing sector from 1990 to 2022, using data from the Central Bank of Nigeria’s Statistical Bulletin and the World Development Indicators. It employed the Auto-Regressive Distributed Lag (ARDL) model for its analysis. The Bounds co-integration test revealed the presence of a long-term relationship among the variables selected for the study. The findings reveal that in the short term, gasoline consumption marginally boosts manufacturing output, but it significantly hampers it over the long term. On the other hand, renewable energy’s influence on manufacturing output is negligible yet positive in both the short and long term. The study suggests that by shifting focus from gasoline to renewable energy sources, Nigeria can enhance the resilience, sustainability, and innovation of its manufacturing sector, thus aligning with international environmental objectives and boosting economic growth.
