Toward a Greener Energy Sector: Examining the Nexus of Environmental Taxes, Green Innovation, and Carbon Disclosure in Nigeria

Authors

  • Armayau Alhaji Sani Accounting Department, College of Economics and Information Systems, University of Nizwa, Oman,
  • Muhammad M. Ma'aji Department of Accounting and Finance, CamEd Business School, Phnom Penh, Cambodia,
  • Abdurrahman Pantamee Accounting Department, College of Economics and Information Systems, University of Nizwa, Oman,
  • Rafat Al-batayneh College of Business (CoB), University of Buraimi, Oman,
  • Elias Abduallah ALShaye College of Applied Business Administration, King Saud University, Riyadh, Saudi Arabia,
  • Mujeeb Saif Mohsen Al-aBSY Department of Accounting, College of Administrative and Financial Science, Gulf University, Sanad 26489, Kingdom of Bahrain,
  • Ahmed Jinjiri Bala School of Business, Woxsen University, Hyderabad, India,
  • Hussaini Bala Accounting Department, Tishk International University, Kurdistan Region, Iraq.

DOI:

https://doi.org/10.32479/ijeep.22515

Keywords:

Environmental Tax, Green Innovation, Carbon Emissions, Sustainability, Renewable Energy

Abstract

This study examined the impact of environmental taxes (EN_TAX) and green innovation, considering a sample of 376 firm-year observations. The energy firms were grouped by sector. The data was analyzed using a Generalized Method of Moments (GMM). The coefficient of regression established that EN_TAX exerts a negative and significant effect on emission disclosures, implying that high environmental and energy taxes discourage companies from full emission disclosure. In contrast, the result of green innovation (GREEN_INN) indicates a significant positive coefficient on emissions disclosure, demonstrating that investment in green technologies and renewable energy reduces carbon emissions and environmental degradation. The findings imply that preference should be given to research and investment in renewable energy technologies to enhance a sustainable environment. Our results provide guiding evidence to regulators and corporate policy makers with a framework to promote sustainable environmental and SDGs on clean energy.

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Published

2025-12-26

How to Cite

Sani, A. A., Ma’aji, M. M., Pantamee , A., Al-batayneh, R., ALShaye, E. A., Al-aBSY, M. S. M., … Bala, H. (2025). Toward a Greener Energy Sector: Examining the Nexus of Environmental Taxes, Green Innovation, and Carbon Disclosure in Nigeria. International Journal of Energy Economics and Policy, 16(1), 1227–1234. https://doi.org/10.32479/ijeep.22515

Issue

Vol. 16 No. 1 (2026)

Section

Articles

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