Innovative finance for climate change challenge of energy utilization in conventional small-scale maize production in Niger State, Nigeria: Climate finance essentials

The present study applied the stochastic cost frontier approach to evaluate farm energy resource management in maize production using 120 farmers in Niger State, Nigeria. The results revealed that energy cost efficiency among the respondents varied substantially ranging between 1.002 and 1.126, with mean energy cost efficiency of 1.047. Furthermore, the results showed that there was relative existence of economies of scale among the farmers, meaning that an average farm in the study area produce at minimum cost considering the farm size which is an indication that they operates in second stage of production surface (stage of efficient resource utilization).This result was further collaborated by the mean energy cost efficiency of 1.047 obtained which indicates that an average farm in the sampled area is approximately 4.7% above the frontier cost, indicating that they are relatively cost efficient in allocating their scarce energy resources. The result of the analysis indicate the presence of cost inefficiency effects as depicted by the significant estimated gamma coefficient of about 0.9995 and the generalized likelihood ratio test result obtained. Solving allocation is critical for improving farm energy resource use of farmers in the study area, given that energy cost efficiency has assumed first step in combating and stabilising greenhouse gas concentrations because it is the fastest and best effective cost option. It tends to improve the energy system by reducing losses and overload; reduce investments in energy infrastructure; mitigate energy price rises and volatility by easing short- and medium-term imbalances between demand and supply; help to reduce CO2 emissions and increase energy security. Additionally, energy cost efficiency offers non-energy benefits, such as reduce operating costs; productivity growth; product quality improvement, capacity utilisation, and worker safety; waste reduction and pollution prevention. Therefore, the need to recognise the importance of promoting energy cost efficiency in the present century becomes a child of necessity; before it is too late, policy measures should be adopted to restore the balance between agriculture and environment