Green Economy Practices and Innovation among Nigerian Firms
DOI:
https://doi.org/10.61453/joit.v2026_0303Keywords:
Green economy practices, innovation, sustainability, energy management, Nigerian firmsAbstract
This study examines the association between green economy practices and product innovation among Nigerian firms. Using data from the 2025 Nigeria World Bank Enterprise Survey, the study constructs a Green Economy Practices Index based on firms’ adoption of carbon dioxide monitoring, energy management, and on-site solar energy. A Probit regression model with robust standard errors was employed to assess the relationship between green economy practices and product innovation, controlling for women ownership, website ownership, firm size, firm age, and export status. The results show that green economy practices have a positive but statistically insignificant association with product innovation (AME = 0.0115, p = 0.384). Website ownership is positively and marginally associated with innovation, while firm size has a significant negative association. The study concludes that green economy adoption alone provides limited evidence of higher product innovation. Policies promoting green investment, energy efficiency, renewable energy, and productive digitalisation are recommended.
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