The Nexus of Green Accounting and Standard of Living in Nigeria

The objective of the study was to determine the long run effect of green accounting on standard of living in Nigeria using data obtained from manufacturing firms’ financial statement for Green accounting and CBN and World Bank publication for Standard of living for the period 2003 to 2022. The Pooled Mean Group (PMG) estimation technique was used in the empirical analysis to estimate the long-run and short-run relationship amongst the variables for the panel data. The study found only economic cost has significant effect on inflation. Social costs had significant impact on unemployment alone indicating social sustainability practices such as CSR only targets the labour market segment of the economy. The study also found that a rise in environmental and economic expenditures lead to significant reductions in misery index with highly elastic effects that relates a one-to-one effect. We recommend, firms should re-visit social commitments strategy and focus through either a change in CSR strategies or re-evaluation to ensure their sustainability delivers long-term effects in the economy. The study shows only social costs outlay had significant effect on unemployment, especially in improving welfare. Policy makers within the companies need to consider the sustainability policies as a long term planning strategy while also improving linkages of economic expenditures to GDP growth. Policy action by the firms and Government on sustainability and green economic planning must consider long run implications and applicability in all economic segments.