Assessment of energy efficiency investment in Onitsha business cluster, Nigeria

Abstract

Purpose This paper empirically assesses energy efficiency (EE) adoption among firms by examining the factors that drive investment in EE in the Onitsha plastic cluster, South-East, Nigeria. Design/methodology/approach Self-administered questionnaires were delivered to the selected enterprises. A total of 450 questionnaires were administered of which 423 were certified valid and used for the analysis. A Heckit model was developed and estimated. Findings Gender, firm size, Joneses effect and expected cost reduction benefits are the significant determinants of EE investment. However, firm structure, government incentives, regulatory requirements and reduction of carbon emission are insignificant drivers of EE investment decisions in the Onitsha plastic cluster. Originality/value This paper presents a foremost attempt at analysing the determinants of energy investment in a cluster in Nigeria.

Balancing the scales: Does public debt and energy poverty mitigate or exacerbate ecological distortions in Nigeria?

“…Nigeria, which has a population of more than 213 million, only has a 55.4% access rate to electricity, according to the World Bank (2022), with just 24.6% and 83.9% of its rural and urban populations, respectively, having access to power. The majority of homes that are connected to the power grid endure regular voltage changes and daily outages, prompting the widespread reliance on diesel and gasoline‐powered generators as well as other high‐polluting fuels to meet electricity needs (Dimnwobi, Okere, et al., 2022; Dimnwobi, Nwokoye, et al., 2023; Omoju et al., 2020). The use of these unclean fuels leads to indoor air pollution, and as per the World Health Organization, indoor air pollution‐related ailments account for 3.8 million annual fatalities.…”