Abstract
The Niger Delta in Nigeria is an area of high economic activity, especially in the oil and gas sector, which not only has been responsible for a considerable increase in the emissions of greenhouse gases but also has caused the degradation of the environment. It is thus a main challenge for the government to come up with policies that would make it possible for economic growth to continue while the environment is still protected. The current research presents a mathematical model that is based on system dynamics to analyze the interactions among the three forces of economic growth, carbon pricing policies, and greenhouse gas emissions in the Niger Delta region. The model combines the dynamics of macroeconomic growth, mechanisms of emissions production, and carbon pricing as a form of regulatory feedback control. A set of coupled nonlinear differential equations is created to describe the changes in output, emissions intensity, cumulative emissions, and carbon price dynamics over time. The fundamental qualitative characteristics of the model, like positivity, boundedness, equilibrium existence, and stability, are proven. A semi-analytical solution method that uses the Differential Transform Method (DTM) is applied to derive the dynamic solutions and policy implications that are approximated. The scenario analyses exhibit that putting in place a reasonable carbon price can lead to a situation where economic growth is no longer accompanied by emissions growth, thus making it possible for the environment to be sustainable in the long run without any major contraction in the economy. The findings give a numerical framework for the design of climate and environmental policies that are in line with the goal of sustainable development in the Niger Delta.