Modelling urbanization, trade flow, economic growth and energy consumption with regards to the environment in Nigeria

This study tries to model urbanization, trade flow and energy consumption with regards to the environment in Nigeria relying on the STIRPAT model with data spanning 1980Q1-2016Q4. The Zivot and Andrews (J Bus Econ Stat 10(3):251-270, 1992) test affirm that the variables are trended but stationary after first difference. The ARDL bounds test and the Bayer and Hanck (J Time Ser Anal 34(1):83-95, 2013) cointegration tests confirm a long run relationship among the variables. Findings reveal that urbanization and energy consumption are the major drivers of CO2 emissions in both time periods, while trade performs the opposite. Also, a unidirectional causality exists from urbanization and its square to carbon emissions. This clearly indicates that urbanization causes environmental degradation. Therefore, policies to tackle energy poverty and also make it clean, minimize urban anomalies and enhance sustainable growth were suggested.