APPRAISAL OF CARBON TRADING PRACTICES IN THE CONSTRUCTION INDUSTRY IN LAGOS STATE, NIGERIA

Abstract

The construction sector provides infrastructure and structures to society by consuming a substantial quantity of nonrenewable energy, which results in significant Carbondioxide emissions. The carbon emission is either direct or indirect. Carbondioxide could pose a serious danger to the economy of Nigeria in the future if proper measures are not put in place with the country being one of the leading producers and end users of fossil fuels in the world. With Nigeria ranked 44th in the world for Green House Gas emission, there is possibility of ranking higher in later years due to the pace of population increase in the country which will result in the increase of CO2 emission significantly. Therefore, this study evaluates the level of awareness of carbon trading practices in the construction industry in Lagos state, drivers for the adoption of carbon trading practices, barriers in the adoption of carbon trading practices, perceived benefits of the adoption of carbon trading practices and examined measures to improve the adoption of carbon trading practices in the Nigerian construction industry. Primary data were collected through the administration of questionnaires to Quantity Surveyors, Architects, Builders and Engineers. A total number of 356 questionnaires were administered using convenience sampling technique; 209 of them were returned and found suitable for analysis, representing a response rate of approximately 58.7%. The data collected were analyzed using Frequency Distribution and Percentage, Mean Item Score, Factor Analysis, Kruskal-Wallis H Test and Relative importance index. The findings revealed that in Lagos state, general awareness regarding carbon emissions and environmental issues across the various organizations evaluated is poor and the construction organizations do not have a singular person directly in charge of carbon or environmental issues. The study further showed that attitude to environmental sustainability and climate change is the major barrier to the adoption of carbon emission. Most professionals are nonchalant towards carbon emission and its impact. The study also revealed that reduction of transactional cost is the most effective measure to improve the adoption of carbon trading. Tackling carbon emission is a local issue that depends on individual country’s emission status and vulnerability to climate change to enable cost minimization, it will therefore require management strategies that are locally adaptive due to different energy sources in Nigeria and variation of other factors globally. Based on the findings construction professionals are more aware of cap and trade carbon trading practice, it is the most adopted carbon trading practice also, although they are willing to adopt baseline and credit carbon trading practice. This could be attributed to the fact that baseline and credit will give room for the transfer of emitting ability to the government. Emission from factories, regulation and government directive reduction of imported heat and emission from physical and chemical process are the most relevance drivers influencing the adoption of carbon trading practices in Lagos State. Therefore, Construction professionals in Lagos State are more aware of cap and trade carbon trading practice compared to baseline and credit carbon trading practice. Emission from factories, is one of the most relevance drivers influencing the adoption of carbon trading practices in Lagos State. The most significant barriers to the adoption of carbon trading in Lagos State are environmental sustainability and climate change. Emission reduction, deployment and innovation of low-carbon technology are the major benefits to the adoption of carbon trading in Lagos State. Ways of improving the adoption of carbon trading practices in Lagos State include reducing transactional cost, introducing a small-scale abatement program, need for search and development and demonstration