Climate Monetary Policy Design and Modelling
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The significance of green monetary policy design in the face of current climatic issues
has been investigated. The study considers the perspectives of other researchers in
previous studies while focusing on the Nigeria situation and monetary climate policies in
the country. The study's goal is to put current monetary policy instruments to the test and
check their alignment with climate fluctuations and policies. The analysis spans the years
1990 to 2020, utilizing data fromthe World Development Indicators and the Central Bank
of Nigeria's statistics archives. Various analytical studies are performed, and the
monetary policy tools used are individually assessed to validate their efficiency in
reducing climate change. The study applies ordinary least squares methodologies,
indicating that the Central Bank's money supply and monetary policy rate processes
match with climate change monetary policy adaptation. As a result, the country's money
supply and interest rate are environmentally beneficial. Nonetheless, the analysis
concludes that inflation and exchange rates are unimportant throughout the time period
under consideration. As a response, the research recommends that the government,
through its financial institutions, completely implement monetary policy changes in favor
of climate change in the country. The research also proposes that the authorities
aggressively seek green financing of ecofriendly technology using green bonds, which
are currently on the market. The budgeting system is critical for monitoring the green
fund's administration and effective application to green initiatives.
Keywords
HB Economic Theory