PAPER TITLE :POVERTY AND ENVIRONMENTAL-DEGRADATION NEXUS: AN ECONOMIC ANALYSIS OF THE EFFECTS OF CRUDE-OIL EXPLOR

JOURNAL Of SUSTAINABLE TECHNOLOGY | VOLUME 1 NUMBER 1 2010

Paper Details

  • Author(s) : APATA, T.G., ADEOLA A. O. and AFOLAYAN, J.A
  • Abstract:

This study examined the relationship between crude-oil explorations as a form of environmental degradation and poverty levels. Specifically, effects of crude-oil exploration on the profitability of crop-farming/fishing activities were measured. Multi-stage random sampling procedure was used in the collection of primary data.  Data were subjected to budgetary analysis, oil pollution index and Logit regression model. Budgetary analysis revealed that average net income from farming/fishing activities is N159,624.00, net loss is N175, 350.00.  Households that made income losses from farming/fishing activities were 22.66% more than those who did not lose.   Households who were poor in polluted areas (60.20%) depended more on income from farming/fishing livelihood activities.  The Logit analysis showed that household size (t = 2.32; p < 0.01), farming/fishing income (t = 2.71; p < 0.01), expenses on food (t = 2.59; p < 0.01), access to credit (t = 3.42; p < 0.01) and economic loss (t = 2.76; p < 0.05) in yield are explanation variables identified as the determinations of poverty. This paper revealed that crude-oil exploration activities have had a negative impact on primary livelihood activities of farming/fishing activities of the host communities. This was reflected in the low outputs and low income earned.  Income earned from these activities has not helped to meet basic needs and this has perpetuated poverty. Hence, boosting other sources of livelihood activities can go a long way in helping many households increase their incomes, meet basic needs and move out of poverty.