Department of Economics, Federal University, Wukari, Nigeria
Online published on 22 January, 2015.
The research investigated the effects of oil and gas extraction on cassava output in Eleme Local Government Area of Rivers State between 1986 and 2011. An OLS regression equation was employed in conjunction with Augmented Dicker Fuller unit root test, Johansen Cointegration and Vector Autoregressive Model. The results show that in the long run, there is a negative relationship between land input, gas flaring and water pollution and cassava output in Eleme LGA. This result was consistent with our a priori expectation that, continued oil spillage and gas flaring have negative economic consequences on output. Based on such findings, recommendations were made for the operators to use modern technologies of extraction and regular monitoring of oil production activities and facilities to avoid vandalization.
Cumulative Effects, Oil and Gas, Cassava output, Cointegration