Testing the income-finance-trade-environment nexus based on the ecological load capacity factor: Frequency-domain causality evidence from Nigeria

To ensure sustainable development, it is crucial that the consumption of ecological resources remains within their productive capacity. This study aims to support policy formulation by examining nexus between income, financial trade openness, and load capacity factor in Nigeria from 1970 2021. The results Bayer-Hanck autoregressive distributed lag (ARDL) bounds cointegration tests indicate a long-run equilibrium relationship among variables. Parameter estimations were conducted using dynamic ordinary least squares (DOLS) ARDL model estimators. Both short-run has U-shaped curve with thereby validating hypothesis Nigeria. estimated threshold turning points fall Nigeria's current range per capita GDP, which indicates further increases income will enhance sustainability. Additionally, exhibits negative development openness long run. Breitung-Candelon spectral Granger causality reveal that, run, unidirectional runs factor, bidirectional exists case development. Furthermore, none causal paths are significant for wavelength periods below four years. Therefore, recommends implementing medium-to long-term strategies strengthen resilience base economy.