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Environmental Pollution Policy of Small Businesses in Nigeria and Ghana: Extent and Impact

Author

Listed:
  • Uchenna Efobi

    (Covenant University, Ota, Ogun State, Nigeria)

  • Tanankem Belmondo

    (MINEPAT, Yaoundé, Cameroon)

  • Emmanuel Orkoh

    (World Trade Organization, Geneva)

  • Scholastica Ngozi Atata

    (Abeokuta, Nigeria)

  • Opeyemi Akinyemi

    (Covenant University, Ota, Ogun State, Nigeria)

  • Ibukun Beecroft

    (Covenant University, Ota, Ogun State, Nigeria)

Abstract

This study provides a comprehensive assessment of firms’ operation and environmental protection polices in Nigeria and Ghana, where there has been a rising industrial growth amidst low regulatory and institutional frameworks. We analyze the extents to which firms’ adoption of environmental protection policies affect their performances. We use firm-level data of 842 firms (447 for Nigeria and 395 for Ghana) distributed across different regions of both countries for our descriptive and econometric estimations. We find, among other things, that firms’ adoption of internal policies on environmental protection is dismally low in both Nigeria (32 percent) and Ghana (17 percent), with policies focused on reducing solid (38 percent, Nigeria; and 35 percent, Ghana), gaseous (22 percent, Nigeria; and 44 percent, Ghana), and liquid (24 percent, Nigeria; and 14 percent, Ghana) pollution. Training appears to be an important intervention that can help improve firms’ adoption of such policies. We also found that firms’ adoption and implementation of environmental protection policies significantly improve their performance.

Suggested Citation

  • Uchenna Efobi & Tanankem Belmondo & Emmanuel Orkoh & Scholastica Ngozi Atata & Opeyemi Akinyemi & Ibukun Beecroft, 2018. "Environmental Pollution Policy of Small Businesses in Nigeria and Ghana: Extent and Impact," AFEA Working Papers 18/042, African Finance and Economic Association (AFEA).
    • Handle: RePEc:afe:wpaper:18/042
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    Cited by:

    1. Karakara, Alhassan & Osabuohien, Evans & Asongu, Simplice, 2021. "Domestic Energy Consumption in Ghana: Deprivation versus Likelihood of Access," MPRA Paper 110137, University Library of Munich, Germany.
    2. Simplice A. Asongu & Rexon T. Nting & Joseph Nnanna, 2020. "Linkages between Globalisation, Carbon Dioxide Emissions and Governance in Sub-Saharan Africa," International Journal of Public Administration, Taylor & Francis Journals, vol. 43(11), pages 949-963, August.
    3. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Inclusive development in environmental sustainability in sub‐Saharan Africa: Insights from governance mechanisms," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(4), pages 713-724, July.
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Enhancing Governance for Environmental Sustainability in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 19/090, African Governance and Development Institute..
    5. Opeyemi, Akinyemi & Uchenna, Efobi & Simplice, Asongu & Evans, Osabuohein, 2019. "Renewable energy, trade performance and the conditional role of finance and institutional capacity in sub-Sahara African countries," Energy Policy, Elsevier, vol. 132(C), pages 490-498.
    6. Olufunke P. Adebayo & Rowland E. Worlu & Chinonye L. Moses & Olaleke O. Ogunnaike, 2020. "An Integrated Organisational Culture for Sustainable Environmental Performance in the Nigerian Context," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    7. Ionela Maniu & Cătălina Costache & Dănuţ-Dumitru Dumitraşcu, 2021. "Adoption of Green Environmental Practices in Small and Medium-Sized Enterprises: Entrepreneur and Business Policies Patterns in Romania," Sustainability, MDPI, vol. 13(9), pages 1-21, April.
    8. Asongu, Simplice & Odhiambo, Nicholas, 2020. "The role of Globalization in Modulating the Effect of Environmental Degradation on Inclusive Human Development," MPRA Paper 103143, University Library of Munich, Germany.
    9. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Governance,CO2 emissions and inclusive human development in Sub-Saharan Africa," Working Papers 25253, University of South Africa, Department of Economics.
    10. Simplice A. Asongu & Joseph Nnanna, 2021. "Globalization, Governance, and the Green Economy in Sub‐Saharan Africa: Policy Thresholds," World Affairs, John Wiley & Sons, vol. 184(2), pages 176-212, June.
    11. Asongu, Simplice & Odhiambo, Nicholas, 2020. "Trade and FDI Thresholds of CO2 emissions for a Green Economy in Sub-Saharan Africa," MPRA Paper 107494, University Library of Munich, Germany.
    12. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Economic Development Thresholds for a Green Economy in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 19/010, African Governance and Development Institute..
    13. Alsaleh, Mohd & Abdul-Rahim, A.S., 2022. "The pathway toward pollution mitigation in EU28 region: Does hydropower growth make a difference?," Renewable Energy, Elsevier, vol. 185(C), pages 291-301.
    14. Opeyemi Akinyemi & Uchenna Efobi & Evans Osabuohien & Philip Alege, 2019. "Regional Integration and Energy Sustainability in Africa: Exploring the Challenges and Prospects for ECOWAS," African Development Review, African Development Bank, vol. 31(4), pages 517-528, December.
    15. Guivis Zeufack Nkemgha & Vladimir Kengne & Armel Peuwo Djouaka, 2021. "Does the exploitation of natural resources promote the industrialization of African countries?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1338-1356.

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    More about this item

    Keywords

    Environment; Green Industrialization; Performance; Pollution; Small Businesses; West Africa;
    All these keywords.

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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