IMPACT OF RENEWABLE ELECTRICITY GENERATION ON ECONOMIC OUTPUT IN NIGERIA

Abstract

Electrical power is an important component for the development of any economy and is responsible for prosperity. This study investigated the impact of hydroelectricity power generation on economic output in Nigeria, presented over the period of 1980-2020, using the ARDL method. Unlike other existing studies that checked the effect of renewable electricity consumption on economic development or environmental sustainability for different countries, this study further presented the casual relationship between economic output and hydroelectricity generation in Nigeria. It employed the Bounds testing approach for cointegration relationship and the Granger causality test due to TYDL technique. The findings of the study revealed that there is no causality between
hydroelectricity power generation and aggregate output in Nigeria. Based on the findings of the study, it was recommended among others that policies aimed at boosting the generation and distribution of hydroelectricity power supply in Nigeria should be maintained and improved. This in turn would have a positive impact on the economy, as electricity generation from renewable sources is one of the objectives of sustainable development.