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Extending the theory of planned behaviour with application to renewable energy investment: the moderating effect of tax incentives

Yusuf Abdulkarim Daiyabu (Centre for Nuclear Energy Research and Training, Nigeria Atomic Energy Commission, Maiduguri, Nigeria)
Nor Aziah Abd Manaf (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Sintok, Malaysia)
Hafizah Mohamad Hsbollah (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Sintok, Malaysia)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 17 May 2022

Issue publication date: 23 January 2023

565

Abstract

Purpose

The purpose of this study is to deploy and expand the theory of planned behaviour (TPB) model with application to renewable energy investment by incorporating the component of tax incentives (TIN). This will serve as an additional measure in understanding the conventional energy stakeholders’ investment intention into renewable energy in Nigeria.

Design/methodology/approach

Data was collected from 357 individual key conventional energy stakeholders in Nigeria using survey questionnaires. The research model was tested using structural equation modelling.

Findings

The results from the study revealed the applicability of the TPB in predicting the conventional energy stakeholders’ investment intention into renewable energy. The result indicates that attitude and subjective norm are significantly associated with investment intentions.

Research limitations/implications

The outcome implies that the integration of tax incentives can improve the predictive power of the model as the introduced variable demonstrates a significant impact on the conventional energy stakeholders’ investment intention into renewable energy.

Practical implications

This study extends on the well-established TPB model by integrating tax incentives in understanding investment intentions and the outcome implies a significant association of tax incentives with investment intention and moderated the influence of attitude and subjective norm over the conventional energy stakeholders’ investment intention.

Originality/value

TPB has been widely deployed and even extended to predict intention in numerous fields of study. Available literature presents the lack of such empirical research that focuses on investment in Nigeria and specifically regarding energy investment. The outcome highlighted the significant influence of tax incentives, thus the need for policymakers to suggest and implement various tax incentives to attract private investment into renewable energy for electricity generation that will consequently assist in achieving SDG-7 and mitigate climate change.

Keywords

Citation

Daiyabu, Y.A., Manaf, N.A.A. and Mohamad Hsbollah, H. (2023), "Extending the theory of planned behaviour with application to renewable energy investment: the moderating effect of tax incentives", International Journal of Energy Sector Management, Vol. 17 No. 2, pp. 333-351. https://doi.org/10.1108/IJESM-11-2021-0011

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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