Essay On Role Of Energy In Economic Growth

1091 Words5 Pages
Over the decades, there has been an increase in consumption of energy in various sectors of the economy which has led to increasing debate and discuss among researchers and academician. Energy plays an important role in the economic growth of both developed and developing countries. It has always been critical for the development and growth of the country. Adequate energy supply is necessary to meet the needs of the country and also necessary for poverty reduction. However, growth hypothesis suggests that energy consumption is an indispensable component in growth, directly or indirectly as a complement to capital and labour as an input in the production process (Mulegeta et al. 2010).since energy plays a crucial role in contribution to production and consumption activities the nexus between energy consumption and economic growth has been a subject of significant attention in the literature. All economies in the world regard energy as a propelling force behind any economic activities in different facet of life overtime. Energy in different facet of life supports the provision of basic needs such as cooking, lighting, a comfortable living temperature, the use of appliances, essential health care,…show more content…
With adequate utilization of energy potentials to meet demand, the nation would experience sustainable economic growth. (Gbadebo & Chinedu 2009).In Nigeria, energy serves as the pillar of wealth creation evident by being the basis of operations and engine of growth for all sectors of the economy. The outputs of the energy sector (electricity and the petroleum products) usually merge the activities of the other sectors which provide essential services to direct the production activities in such sectors. Nigeria is endowed with abundant energy resources but suffers from perennial energy crisis which has defied solution (Adegbemi & etal

More about Essay On Role Of Energy In Economic Growth

Open Document