FUEL SUBSIDY REMOVAL AND ENVIRONMENTAL QUALITY IN NIGERIA: A DYNAMIC COMPUTABLE GENERAL EQUILIBRIUM APPROACH
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
Environmental challenges such as climate change continue to threaten human existence globally. This has necessitated renewed focus on some existing policies that by design or otherwise may counter global efforts at addressing these challenges. Various engineering solutions have been championed while economic and social development tools have focused on using various policy instruments to reduce the concentration of emissions in the atmosphere. One of such policies is the fuel subsidy policy and various arguments for and against this policy exists. While some support the policy as it enhances access to energy and promotes welfare, others argue that it places budgetary burden on the economy. More so, studies that have focused on policy instruments have employed different approaches. However, those that focused on addressing environmental questions in terms of promoting green growth are very scarce. This study, thus, investigated the environmental consequences of fuel subsidy removal in Nigeria using an economy-wide modelling approach. It adapted the energy-environment (E2) dynamic CGE model of the Nigerian economy that is based on the Partnership and Economic Policy (PEP) recursive dynamic CGE model. Furthermore, the study simulated three scenarios namely the partial removal (Simulation1), gradual removal (Simulation 2) and complete removal (Simulation 3) of import tariff on imported refined oil. It assessed the impact of the various simulation strategies on carbon emissions (as a measure of environmental quality) in Nigeria. The dataset employed is the re-aggregated version of the 2006 Nigerian Social Accounting Matrix (SAM) that specially accounted for petroleum subsidy. The re-aggregation was to make it more compatible with the main objective of the study. This is necessary since the 2006 SAM has different components. The outcome of the simulation analysis showed that reduction in carbon emission occurred only when subsidy was partially removed, but marginally increased with gradual removal and complete removal. This suggests that even though the removal of subsidy can reduce emission, it is not sufficient in the long term especially as there is yet to be a viable “green” alternative to petrol in Nigeria. Therefore, subsidy removal will only make consumers reduce consumption initially and then increases later in order to meet their energy demands since there is no better environmentally friendly alternative to petrol. It is recommended that subsidy on petrol be targeted towards enhancing the commercialisation of renewable energy sources or appropriate technology (such as fuel blending) which are still not affordable for some households. This will further enhance the development of green growth practices and then be supported with relevant financing options in order to make it sufficient for driving environmental quality in Nigeria.
Related Project Materials
IMPROVING FAIRNESS IN LOAD BALANCING AMONG RADIO ACCESS TECHNOLOGIES IN HETEROGENEOUS WIRELESS NETWORK
ABSTRACT
The major problems of most wireless technologies such as EDGE, HSPA, WiMax, HSPA+, WiFi G, WiFi and LTE are the imbalance of rad...
ENTREPRENEURIAL SPIRIT AMONG NURSES - A TOOL FOR PROFESSIONAL DEVELOPMENT USING GENERAL HOSPITAL SABON TASHA, KADUNA STATE AS A CASE STUDY
BACKGROUND OF THE STUDY
Studies on entrepreneurship in higher education have recently been condu...
PROMOTING INCLUSIVITY IN TECHNICAL EDUCATION FOR INDIVIDUALS WITH DISABILITIES
Abstract: Promoting inclusivity in technical education for individuals with disabilities is...
IMPLICATION OF NATIONAL BROADCASTING COMMISSION CODE ON AFRICAN INDEPENDENT TELEVISION
ABSTRACT
The aim of this study was to investigate the implication of National Broadcasting Commis...
ASSESSING THE IMPACT OF EARLY CHILDHOOD EDUCATION ON COMMUNITY WELL-BEING
ABSTRACT: Assessing the impact of early childhood education on community w...
THE INFLUENCE OF BUSINESS ANALYTICS ON OPERATIONAL EFFICIENCY
Abstract: THE INFLUENCE OF BUSINESS ANALYTICS ON OPERATIONAL EFFICIENCY
This study aims to examin...
PHYSIOCHEMICAL PROPERTIES OF SACHET WATER IN ABA
ABSTRACT
In spite of the varying levels of contamination widely reported, sachet water is still well accepted. This stud...
THE ROLE OF EARLY CHILDHOOD EDUCATION IN TEACHING URBAN FARMING
ABSTRACT: This research investigates the role of early childhood education in teaching urban farming practices to young children. Early exposu...
THE ROLE OF SOCIAL MEDIA IN CURBING THE SPREAD OF EBOLA VIRUS
Abstract
The research examines the role of social media in curbing the spread of ebola virus using Facebook users who ar...
TECHNICAL AND VOCATIONAL EDUCATION FOR PRODUCTIVITY AND SUSTAINABLE DEVELOPMENT IN NIGERIA
ABSTRACT
Vocational and Technical Education is the form of education that comprises of the training in...
