Abstract
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 government policy driven model to achieve the development of sustainable low-carbon energy innovation in Nigeria. The study used descriptive analysis to capture information on the influence of government policy from university academia and members of the public, obtained through a questionnaire.