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The relationship which exists between carbon emission, electricity generated and output produced in manufacturing firms was investigated. The specific objectives were to investigate the impact of electricity and output produced on carbon emission and to examine the causal link between carbon emission, electricity and produced output in the firms. The study made use of monthly data for a year from two manufacturing companies in Nigeria. Quantitative and econometric analysis (panel analysis, ordinary least square and causal analysis) were carried out. The quantitative analysis revealed the use of natural gas to generate electricity led to the emission of less amount of CO2/kWh per tonne when compared to diesel. It also revealed that natural gas reduces carbon dioxide emitted by 43% when compared to emission from the use of diesel. The ordinary least square analysis for both firms showed a positive relationship between carbon dioxide and electricity generated by firms. The panel analysis showed that both electricity generated and output produced have positive and significant impacts on carbon dioxide emitted.
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