Linking policies and regulations to sustainable finance for the promotion of urban agriculture: Evidence from micro and small businesses

Abstract

Urban agriculture is closely tied to several of the Sustainable Development Goals. It can play a critical role in helping to achieve these goals by promoting sustainable food production and consumption, reducing greenhouse gas emissions, and creating more sustainable cities. It is also considered a pathway for overcoming food security in urban areas. However, this needs to be integrated with policies and regulations supported by sustainable finance. Due to COVID-19, conflict, and lack of infrastructure in Ethiopia, several challenges must be addressed to promote urban agriculture to aid food security. Hence, this study is conducted to examine how government policies and regulations promote urban agriculture through sustainable finance in Ethiopia. The study employed both an explanatory research design and a mixed research approach. Multi-stage sampling techniques that include (Simple random sampling techniques and judgmental sampling were used. The data was collected from selected micro and small enterprises engaged in urban agriculture. The structural and measurement model is estimated with the help of smart-pls software version 4. The study's finding implies that government policies and regulations have an insignificant effect on urban agriculture. At the same time, the study finding implies that sustainable finance has an important mediating role between urban agriculture and government policies. Hence, the impact of government policies and regulations on urban agriculture is found to have an indirect effect. Based on the study's findings, the study recommends that all stakeholders promote innovation and entrepreneurship that promote urban agriculture through sustainable finance.