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Abstract

The main objective of this paper is to inspects the causal relationship between urbanization, industrialization and CO2 emissions in Nigeria using the technique of Modified Toda and Yamamoto causality for the period spanning 1982 -2018. The long run causality result indicates that there is bidirectional causality running from economic growth to CO2 emissions and from industrialization to economic growth. This suggests that higher economic growth is linked with CO2 emissions and the growth of industries is related with higher economic growth. Again, unidirectional causality also exists running from urbanization to economic growth, urbanization to CO2 emissions, urbanization to industrialization. Based on these findings, it is therefore recommended that Nigerian government should strategies comprehensive environmental policy in the coming years that would make the environmental rules and regulations more severe to dodge any inconveniences that is associated with urbanization and industrialization in the near future for the purpose of maintaining the quality of the environment. Contribution/ Originality:This study contributes to the existing literature via a novel attempt in providing a quantitative analysis of the causal relationship between urbanization, industrialization and CO2 emissions in the case of Nigeria using Modified T-Y causality procedure.