Abstract: On utilizing the available resources in Nigeria, carbon dioxide and other environmental substances are emitted into the atmosphere, which pollutes the Economy. Dynamically, this research work employs quarterly time series on the variable of interest, given the integration of the same order [I(1)] of the series, and co-integration via Bound-Testing Technique, this work utilizes the Auto-regressive Distributed Lag (ARDL) Model and discovered that at present, Emission of Carbon Dioxide (CE) is statistically significant and positively related to the Average Manufacturing Capacity Utilization (AMCU) in the short and long run, denoting that the emission of Carbon Dioxide is in-line with Green Economics; which however will not jeopardize future production and consumption. On the other hand, Manufacturing Value Added (MVA) is inversely related with Average Manufacturing Capacity Utilization (AMCU), in the short and long-run. These findings agree with Zhen and Jing (2009), Anietie (2011) and DiNapoli (2007). The Researchers however suggest utilization of available capacities in adding value to goods and services and a more effective and tightened Carbon Emission Tax System (CETS) like Cap-and-Trade, Carbon Tax, Pigouvian Tax, etc. which will keep in check, the quantity of Emitted Carbon Dioxide in Nigeria and consequently, not affect the birds of the air and earth (Livestock), aquatic animals, and human beings. Hence creating a future better Nigeria with respect to production and Consumption.