The Effect of Foreign Direct Investment on the Nexus between Green Levies and Green Energy Technologies

Exploring the role of foreign direct investment (FORGDIR) in promoting the influence of green levies (GRENLEV) on green energy technologies (GETs) is pivotal for achieving sustainable development goals. This study therefore, explores the influence of FORGDIR on the nexus between green levies (GRENLEV) and green energy technologies (GETs). We employed quantitative research paradigm as we extracted data from the quantitative method. Data was extracted from the World Bank Database and “Organisation for Economic Co-operation and Development” (OECD) for 20 years from 2003 to 2022 relating to Nigeria. After controlling for climate change and greenhouse emanations, the study found that GRENLEV is positive and significantly related to GETs. It was also revealed that FORGDIR is negative and significantly GETs. It was finally documented that the interaction between FORGDIR and GRENLEV (GREENT*FDI) is negative and significantly related to GETs, implying that FORGDIR reverses the positive effect of GRENLEV on GETs. Thus, it requires a careful policy design and regulatory frameworks that align FORGDIR with green objectives which in return stimulate sustainable investment in GETs. Therefore, this study can provide a useful information for the policymakers and regulators in providing strategies for green growth and sustainable development goals.