Influence of behavioral, governance and investment factors on investment intention in renewable energy in Nigeria: the moderating effect of tax incentives

Nigeria has been battling with insufficient electricity generation. Deploying renewable energy by stimulating private investment is among the options to address this challenge. However, it has been lacking in the country. Therefore, this study expands the theory of planned behavior by integrating governance and investment factors to understand the investment intention of conventional energy stakeholders towards renewable energy for electricity generation in Nigeria. Also, testing the moderating effect of tax incentives. The study deployed mixed method approach by collecting quantitative data using questionnaire and qualitative data from interviews. The quantitative data was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM) while the qualitative data was analyzed using thematic analysis. The quantitative result reveal that attitude, subjective norm and perceived behavioural control influenced investment intention. Governance factors: political stability, government effectiveness, regulatory quality and rule of law also influenced investment intention. Investment factors: perceived returns and tax incentives influenced investment intention while perceived risks has significant but negative impact. Furthermore, tax incentives moderated the relationships between subjective norm, perceived behavioral control, rule of law, perceived risks and returns and investment intention. The qualitative results give insights for why some of the variables specifically, voice and accountability, control of corruption and perceived risks are insignificant. It also highlights additional variables that could possibly influence investment intention. The study contributes to the literature by extending the theory of planned behavior in the context of renewable energy investment, while the methodological contribution centered on deployment of mixed method in the context. The policy implications require the development of a viable implementation strategy for the comprehensive renewable energy framework and policies to attract and maintain investors in the renewable energy sector. Practically, there is a need to deploy renewable energy for electricity generation to achieve the SDGs’ energy targets and climate goals.