The Impact of Power Generation on Economic Growth.
CHAPTER ONE
Objective of the study
The following are the specific objectives for carrying out this research project
- to determine if power generation affects economic growth.
- to determine the amount of power generated in the country.
- to determine the problems facing power generation in the county.
- to ascertain the necessary steps to be taken to improve power generation.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
THEORETICAL LITERATURE REVIEW
The Solow Growth Theory Solow growth theory developed by R.M. Solow in 1957 estimated the contributions of technical change to overall growth rate of US economy. The basic assumption of Solow theory is the law of diminishing returns to labor and capital and constant returns to scale as well as competitive market equilibrium and constant savings. An important assumption of the theory is that a long run per capita growth can be explained by technology progress which comes from outside the model. Solow treated technical changes as disembodied where capital is assumed as homogenous and technical changes as exogenous. Solow theory is an exogenous theory because it opined that technology is exogenous factor which determines growth. In essence, Solow growth theory is very strategic approach to study power generation with its technical progress ideology. It can be assumed that power generation capacity can drive economic growth with this Solow’s theory explanation that long run per capita growth is a function of technological progress. Solow theory has been criticized for his method of measuring the residual and for his estimates which undermine the role of investment in contrast to technical change in the growth process. Critics argued that the result of this approach produces a wave of investment pessimism. His assumptions of perfect competition, returns to scale and complete homogeneity of the capital stock are criticized for been unrealistic.
The Olduvai Theory of Energy Production and Population
The Olduvai theory is defined by the ratio of world energy production and population. The theory stated that life expectancy of industrial civilization is less than or equal to 100 years: 1930-2030. The theory further explained the 1979 peak and the subsequent decline. Moreover, it asserted that energy production per capita will fall to its 1930 value by 2030, thus giving industrial civilization a lifetime of less than or equal to 100 years. This analysis predicted that the collapse of energy production will be strongly correlated with an ‘epidemic’ of permanent blackouts of high-voltage electric power networks — worldwide. According to Duncan (2001), the Olduvai theory, of course, may be proved wrong. But at the present time, it cannot be rejected by the historic world energy production and population data.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of power generation on economic growth
Sources of data collection
Data were collected from two main sources namely:
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information the impact of power generation on economic growth. 200 staffs of CBN, Lagos state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of power generation on economic growth. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of power generation on economic growth
Summary
This study was on the impact of power generation on economic growth. Three objectives were raised which included: to determine if power generation affects economic growth, to determine the amount of power generated in the country, to determine the problems facing power generation in the county and to ascertain the necessary steps to be taken to improve power generation. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staffs of CBN, lagos. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made HRMs, marketers, administrative staffs and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
This study examined the impact of power generation capacity on economic growth in Nigeria. In the model specified, Real Gross Domestic Product is a function of Power generation capacity in Kilowatt, Gross capital formation and Unemployment. With the aid of econometric techniques employed (co integration test, vector error correction mechanism and granger causality); the following results were found that a stable long run relationship exist between the dependent and explanatory variables in the model as supported by the presence of two co integrating equations. This means that the result of this finding can be relied upon in taking long run policy decision
Recommendation
However, our results suggest that the stage of economic development of a country must be considered while devising policies to promote renewable energy production. In this research we have not taken account of factors such as total factor productivity and trade balances in the model. These are important channels through which renewable energy deployment can impact economic growth, especially so in the context of developing countries. Some scholars have propounded that in the future western countries may substitute imports of fossil fuels from middle-eastern countries, with renewable energy imports from developing countries like China. Additionally, this research may be complemented with other studies, which look at the country specific factors such as government policy institutional structures and regulatory barriers, impacting renewable energy production
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