Impact of Nigeria's industrial sector on level of inefficiency for energy consumption: Fisher Ideal index decomposition analysis

Abstract

This paper tries to evaluate the impact of manufacturing-industry sector on the level of inefficient consumption of energy in Nigeria. The Fisher Ideal index decomposition analysis and the VEC model are used for results for the time period from 1991 to 2014. The examined findings indicate that energy efficiency in Nigeria is linked with the per capita income from overall country's economic growth, emissions of component of CO2, consumption of energy and investment for industrial production. In Nigeria, however, systemic reform indicates negative impact on energy production. Furthermore, for the short span of time interval, all variables have concluded with a negative relation with the production of efficient energy. According to the findings of this paper, economic growth, low carbon emissions, and industrial investment are all essential for Nigeria's energy efficiency policies to be intensified. As a result, policymakers and the government should take steps to resolve these issues.

Keywords

• Energy efficiency
• Economic growth
• Carbon emissions
• Energy consumption
• Industrial investment
• Fisher Ideal index