Climate Change and Economic Growth in Nigeria: Moderating Effect of Tax Reform
DOI:
https://doi.org/10.5281/zenodo.15111265Keywords:
climate change, economics growth, tax reform, nigeriaAbstract
Climate change presents significant challenges to Nigeria's economic growth, primarily through temperature anomalies, rainfall variability and deforestation. This study examines how tax reforms can moderate these environmental impacts, ensuring economic stability and sustainability. Using multiple regression and heteroskedasticity-robust regression models, the study analyzes the relationship between climate change indicators and GDP growth. Findings reveal that rainfall variability negatively affects economic performance, while temperature anomalies and deforestation exhibit mixed effects. Tax reforms as an interacting variable moderating role, influencing how environmental factors impact economic outcomes. Interaction analyses indicate that well-structured tax policies can either amplify or mitigate environmental risks, reinforcing the need for balanced fiscal approaches. The study underscores the importance of adaptive climate policies, sustainable tax frameworks and economic diversification to enhance resilience against climate change. Informing policymakers on optimizing tax structures for sustainable development, the research contributes to the ongoing discourse on balancing economic growth and environmental responsibility. The findings also offer valuable insights for businesses and investors navigating Nigeria’s evolving economic landscape in response to climate change challenges.
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Copyright (c) 2025 Ibrahim Hussaini, Mohammed Bukar Maina, Aminu Shehu
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