Published January 21, 2025 | Version v1
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ECONOMETRIC ANALYSIS OF THE POLLUTION HAVEN HYPOTHESIS AND THE ENVIRONMENTAL KUZNETS CURVE VIS-A-VIS CLIMATE CHANGE IN NIGERIA

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The subject of climate change has become a matter of serious concern in recent times given the stark reality of its grave consequences. This paper investigated climate change in Nigeria within the context of the Pollution Haven Hypothesis (PHH) and the Environmental Kuznets Curve (EKC) using the Vector Autoregressive (VAR) OLS estimate technique. Climate changed was proxied by Carbon dioxide emission, CO2 (CO) as dependent variable while Foreign Direct Investment (FDI), Barrels of Crude Oil Production (BCP), Per Capita Income (PCI) and Trade Openness (TO) were used to capture both the PHH and EKC as independent variables. The results revealed that there is no cointegrating relationship among the variables and no Granger Causality from independent variables to dependent variable. However, because of the unilateral Granger Causality from CO to FDI found in the results, it is adjudged that dirty FDI finds its way into the country. Thus there is the dire need for government to filter FDI that comes into the country through proper environmental laws and regulations.

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