The Effect of Environmental Taxes on Environmental Accounting Disclosure of Nigerian Oil and Gas Companies

Abstract

There is currently a lack of information about the contemporary and potential effects of environmental taxes on environmental accounting disclosure. This study, therefore, explores environmental taxes' impact on Nigerian oil and gas companies' disclosure of environmental accounting information. The study used auxiliary data by generating information on the outcome variable and the explanatory variable from the “Organization for Economic Cooperation and Development” (OECD) and annual reports and accounts of the oil and gas corporations in Nigeria. The analysis included thirteen (13) companies as of December 31, 2021. Fixed-effects regression using Estimation using Driscoll and Kraay standard errors (DKSE) has been used in this study. The study revealed that an increase in total green taxes or transportation taxes will stimulate the disclosure of environmental accounting information by the oil and gas corporations in Nigeria. It is also documented that oil and gas companies that have high C2 intensity are less likely to disclose environmental accounting information. The study findings will be useful to the regulators and policymakers in Nigeria. This is because if the government enhances environmental taxes, it may inspire companies to enhance their environmental accounting procedures.

Keywords

• Environmental Taxes, Environmental Accounting Disclosure, Carbon Intensity, Transportation Taxes