Climate Monetary Policy Design and Modelling

Omodero, Cordelia and Alege, P. O. (2023) Climate Monetary Policy Design and Modelling. International Journal of Design & Nature and Ecodynamics, 18 (1). pp. 175-181.

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Abstract

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.

Item Type:	Article
Uncontrolled Keywords:	green monetary policy, climate change, ecofriendly technology, green bond, inflation, JEL Classification codes: O23, Q55, Q55, Q57
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	nwokealisi
Date Deposited:	12 Jan 2024 14:33
Last Modified:	12 Jan 2024 14:33
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/17699

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