Descriptive analysis of building indigenous low-carbon innovation capability in Nigeria

The issue of a low-carbon energy system is contentious especially in developing countries as the world is transiting from a fossil fuel based economy to a low-carbon economy. A new development path of low-carbon energy is being sought so as to prevent the devastating effects of the high-carbon energy system which presently dominates the world. Many developing countries including Nigeria are being faced with the challenges of achieving economic development through a low-carbon energy system because the present energy system is predominantly high-carbon energy dependent, using, for example, fossil fuels. To follow the low-carbon development path, building indigenous innovation capability in emerging and developing countries becomes paramount, instead of relying on a mere technology transfer from developed countries which, most of the time, is in the form of hardware. As a result of the double externality problem and market failures associated with new technological innovation, this study suggests a governme...