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

• Main Authors: Abdulkarim, Yusuf Daiyabu, Abd Manaf, Nor Aziah, Mohamad Hsbollah, Hafizah
• Format: Article
• Language: English
• Published: Emerald Publishing Limited 2022
• Subjects: HF5601 Accounting
• Online Access: https://repo.uum.edu.my/id/eprint/28708/1/IJESM%202022%2001-19.pdf; https://repo.uum.edu.my/id/eprint/28708/; https://www.emerald.com/insight/publication/issn/1750-6220

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.