DOES TECHNOLOGICAL PROGRESS COMPLEMENT THE IMPACT OF CARBON EMISSIONS ON POVERTY RATE? EVIDENCE FROM VECM APPROACH

Abstract

This study examines the relationship between carbon emissions, technological advancement, and poverty reduction in Nigeria. Using a combination of Johansen cointegration and Vector Error Correction Model (VECM) techniques and 1990-2023 annual data, the study analyzes both long-run and short-run relationships among key economic and environmental variables. The findings reveal that while technological advancement significantly reduces poverty, increased carbon emissions, infrastructure expansion-measured through access to electricity-, and economic growth exacerbate poverty levels. These results underscore the importance of integrating technological innovation with environmentally sustainable policies to achieve meaningful poverty alleviation. The study recommends targeted policy interventions to enhance digital access, improve renewable energy adoption, and mitigate the adverse effects of carbon emissions on vulnerable populations. Further research should explore regional disparities and household-level impacts of technology and environmental factors on poverty