Environmental Policy Instruments and Green Accounting in North-West Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.9(1)2026.011Keywords:
Regulations, Taxation, Voluntary, SustainabilityAbstract
This study aimed at looking at the impact of environmental policy instruments on green accounting in North-West Nigeria. The study was motivated by the emerging environmental challenges, poor compliance to environmental regulations and the need to have effective policy mechanisms for environmental sustainability. In particular, the study examined the impact that environmental regulation, environmental taxation, environmental tax shifting and voluntary methods have on green accounting practices. A mixed method research design was applied with primary and secondary sources of data. Secondary data were from selected Organizations in North-West Nigeria for the period 2012-2024 analyzed using panel data techniques, while primary data were collected using structured questionnaires to relevant stakeholders and analyzed using multiple regression analysis. The results of the primary data showed that environmental regulation had a positive and significant effect (β = 0.345, p < 0.001), environmental tax shifting had a positive and significant effect (β = 0.171, p = 0.004), and voluntary approaches had a positive and significant effect (β = 0.115, p = 0.021). But, a negative, yet statistically non-significant relationship between environmental taxation and green accounting was found (β = −0.112, p = 0.051). The model explained 14.9% of the variation in green accounting practices (Adjusted R² = 0.149) and was statistically significant overall (F = 18.454, p < 0.001). Likewise, the results of the secondary data analysis revealed that environment regulation had a positive and significant impact on environmental sustainability accounting (β = 0.444, p = 0.019) while pollution abatement activities had a negative significant effect (β = −1.156, p = 0.001). The study concludes that environmental regulation, environmental tax shifting and voluntary environmental initiatives are important factors that influence the adoption of green accounting practices in North-West Nigeria while environmental taxation has not yet proven to be effective. The study calls for greater enforcement of environmental laws and more widespread environmental tax transfers, more promotion of voluntary environmental measures, and better environmental tax regimes to support environmental accountability and sustainability reporting.
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