Abstract

This study examined the impact of renewable energy consumption on trade openness in Nigeria covering the period of 1990 to 2021. The empirical date was analyzed using Augmented dickey fuller for stationary and autoregressive distributed lag model respectively. The result from Augmented dickey fuller for stationary indicate that all the series were stationary at first difference and were strongly cointegrated. The long run model result revealed that renewable energy consumption had a positive and significant impact on trade openness but it was negative and insignificant in the short run model. The speed of adjustment was estimated to be at 78 percent every year. The study recommends that government should support and encourage investments in the renewable energy sector in the country as well as providing a conducive business environment as this will make renewable energy affordable and accessible to the people as well as attract green foreign investment into the country through openness to trade

Keywords

Renewable Energy, consumption on trade openness, Autoregressive Distributed Lag Model