Impact of poverty, population density, and trade openness on deforestation: fresh evidence from Nigeria

Abstract

Using time series data from 1981 to 2015, this study examines the impact of poverty, population density, and trade openness on deforestation in Nigeria, and it tests the presence of the environmental Kuznets curve (EKC) hypothesis. The results of an autoregressive and distributed lag (ARDL) bounds testing approach to cointegration indicate that poverty, population density, and trade openness all have a significant positive impact on deforestation. The estimated result also suggests that deforestation and income per capita in Nigeria have an inverted U-shaped relationship. Hence, it supports the EKC hypothesis for deforestation in Nigeria. It implies that when income per capita increases, deforestation experiences an increasing trend up to a certain point, after which it reverts with a continuous increase in income per capita. As a recommendation, policy options that would alleviate poverty, control population upsurge, and restrict timber export would be vital in reducing deforestation in the country.