Knowledge, Attitude and Environmental Perception of Carbon Tax: A Case Study of Agricultural and Non-Agricultural Firms in Ekiti State Nigeria

Abstract

This study assessed agricultural and non-agricultural firms' knowledge, attitude, and environmental perception towards carbon emission tax in Ekiti State, Nigeria. Primary data was collected from 320 respondents through a well-structured questionnaire. Descriptive and inferential statistics were used to analyze the data. A one-sample t-test was used to test the hypothesis that there was no significant difference in carbon tax payment between agricultural and non-agricultural firms in the study area. The results revealed a higher examination rate for non-agricultural firms (72.2%) than for agricultural firms (27.8%). The study found that 51.8% of firms were informed about carbon tax payments, while 48.2% were uninformed. Waste burning (69.4%) and use of generators (68.1%) were the most carbon-emitting activities by firms. About 51.6 per cent were satisfied with the air quality of their environment, while 70.3 per cent were also concerned about air pollution. According to the respondents, the air pollution rating was not severe (78.4%), but 50.6 per cent felt worried about air pollution. One significant environmental perception statement that firms agreed on was the perception of the environment as a free rider (4.53). About 37.5 per cent of respondents believed that citizens could play an active role, followed by the government (28.1%). The t-test showed no statistically significant difference between the willingness of agricultural and non-agricultural small businesses to pay a carbon tax. This study recommends that the Ekiti State government and the Ekiti State Environmental Protection Agency (EKSEPA) establish robust legislation, foster collaboration, raise awareness, and promote public-private partnerships to implement successful policies for carbon tax payment and encourage the development of green energy among firms.