Carbon Credit Accounting and Climate Change Mitigation of Oil and Gas Firms in Nigeria
DOI:
https://doi.org/10.65150/EP-jefrr/V2E11/2026-01Keywords:
Emissions reduction rate, Emission intensity ratio, Carbon cost intensity ratio, Renewable energy and energy mix, Environmental liability ratio, Energy intensity ratio and Gas flaring ratioAbstract
The study examined the effect of carbon credit accounting on climate change mitigation among oil and gas firms in Nigeria. Specifically, it assessed the effects of emission intensity ratio (EIR), carbon cost intensity ratio (CCIR), renewables and energy mix (REM), environmental liability ratio (ELR), energy intensity ratio (ENIR), and gas flaring ratio (GFR) on emissions reduction rate (ERR) among listed oil and gas firms in Nigeria. An ex-post facto research design was adopted, using historical environmental and financial data obtained from firms’ annual reports, sustainability reports, and audited financial statements. A longitudinal panel framework was employed to account for firm-level and time-based variations in carbon credit accounting practices and emissions reduction performance. The population comprised all 8 oil and gas firms listed on the Nigerian Exchange Group as of 31 May 2026, and a census sampling technique was adopted due to the manageable population size. The study covered a 10-year period from 2016 to 2025. Data analysis was conducted using E-Views Version 9.0, employing descriptive statistics, correlation analysis, cross-sectional dependence tests, panel unit root tests, Pedroni cointegration tests, redundant fixed effects tests, Hausman tests, and panel regression estimation. The findings showed that EIR had a positive and significant effect on ERR, with a coefficient of 0.158532 and probability value of 0.0002, resulting in the rejection of the null hypothesis. CCIR also exerted a positive and significant effect on ERR, with a coefficient of 0.123955 and probability value of 0.0000. REM had a positive and significant effect, with a coefficient of 0.124114 and probability value of 0.0000. Conversely, ELR had a negative but significant effect on ERR, with a coefficient of -0.150372 and probability value of 0.0474. ENIR and GFR had negative but insignificant effects, with probability values of 0.2380 and 0.7239, respectively. The study concluded that carbon credit accounting practices significantly contributed to climate change mitigation and recommended stronger carbon accounting, emission monitoring, carbon cost integration, renewable energy investment, environmental liability management, energy efficiency, and gas flaring reduction initiatives.
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Copyright (c) 2026 EGBUDUMHE, Suleiman Andrew, OKOLIE, Augustine Oke (Author)
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