This chapter explores the area of environmental finance. Specifically, it sets out the intersection of households, the economics of environmental management, and the environmental consequences of economic investment. The analysis is organized into four main elements: the first section begins by exploring the main themes in environmental economics. Next, it goes on to investigate the link between environmental investing and financial return and then proposes a framework for understanding the different forums in which environmentally oriented investment occurs. The second part proposes ten key propositions on how environmental concerns are connected to financial investment. Section three focuses on one particularly tangible domain—real estate—and includes three case studies to illustrate existing strategies for incorporating environmental value into real estate investment. The final section presents conclusions and recommendations for further research.
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