Exploring the Potentials of Green Finance and Renewable Energy Technologies on Enterprise’s Production Efficiency in Nigeria: A Total Factor Productivity Approach
Author
Ahmed Abdulfatahi Yusuf and Ikwor Kalu Ugbor
Abstract
This study explores the significant impact of green finance and renewable energy technologies in promoting enterprise’s production efficiency in Nigeria. The study employed Total Factor Productivity (TFP) approach to analyse panel data of randomly selected 300 producing firms from 30 different companies in the country from 2013 to 2023. Findings from the study revealed an interesting positive relationship between enterprise production efficiency with green finance and renewable energy technologies. The analysis of heterogeneity and cross sectional dependence indicated that enterprises with support of green finance incentives and renewable energy technologies gain less cost of production, pose less environmental hazards, create more job opportunities, attract more investment and improved production efficiency. The study further provide valuable policy recommendations that government and financial institution should encourage enterprise green financing initiatives through green investment, green credit, green bond, green insurance and green productivity in other to promote environmental sustainability and sustainable economic development.
Keywords
Green finance, Renewable energy, Technological innovation, production efficiency, total factor productivity
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References
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