Trade Intensity, Energy Consumption and Environment in Nigeria and South Africa

Abstract

This study examines the causal relationship between energy consumption, trade intensity andenvironment in Nigeria and South Africa between 1981 and 2016. The study uses a causalityanalysis to examine the relationship between trade intensity, carbon emissions, real GDP percapita, energy consumption, investment, and the particulate emissions. We find that energyconsumption granger causes the quality of environment in Nigeria and South Africa. However,trade unidirectionally causes CO2 emissions in South Africa and we observe a feedback effectbetween trade intensity and carbon emissions in Nigeria. We recommend that both countriesshould focus on attracting investments that will produce only clean goods such that compositioneffect can reduce emissions and improve environmental quality.

Keywords

• Energy Consumption
• Trade Intensity
• Environment
• South Africa
• Nigeria