A Proposal for Green Financing as a Mechanism to Increase Private Participation in Sustainable Water Infrastructure Systems: The Colombian Case

Ruiz, Juan David González; Arboleda, Carlos A.; Botero, Sergio Botero

doi:10.1016/j.proeng.2016.04.058

Cited by 51 publications

(24 citation statements)

References 3 publications

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“…Ng and Tao (2016) highlighted the challenge of lack of enough financing in green projects which is a major obstacle of countries to combat carbon dioxide emissions. In other studies, Ruiz et al (2016) and Clark et al (2018) declared that private participation in financing green projects should be increased. Yoshino et al (2019) explained that the return on investment of green projects is lower than that of fossil fuel projects, thereby creating financial gaps between renewable and fossil fuel investments.…”

Section: Literature Reviewmentioning

confidence: 99%

Energy efficiency financing and the role of green bond: policies for post-Covid period

Rasoulinezhad

2021

CFRI

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PurposeOne of the major negative effects of the Coronavirus outbreak worldwide has been reduced investment in green energy projects and energy efficiency. The main purpose of this paper is to study the role of green bond proposed by the World Bank in 2008, as a reliable instrument to enhance the capital flow in energy efficiency financing and to develop green energy resources during and post the current challenging global time.Design/methodology/approachWe model energy efficiency for 37 members of OECD through a panel data framework and quarterly data over 2007Q1–2020Q4.FindingsThe major results reveal the positive impacts of issued green bonds and regulatory quality index on energy efficiency, while any increase in inflation rate and urbanization decelerates the progress of raising energy efficiency.Practical implicationsAs highlighted concluding remarks and policy implications, it can be expressed that the tool of green bond is a potential policy to drive-up energy efficiency financing and enhancing environmental quality during and post-COVID period. It is recommended to follow green bond policy with an efficient regulation framework and urbanization saving energy planning.Originality/valueTo the best of the authors' knowledge, although a few scholars have investigated the impacts of COVID-19 on green financing or examined the energy efficiency financing, the matter of modeling energy efficiency–green bond relationship has not been addressed by any academic study. The contributions of this paper to the existing literature are: (1) it is the first academic study to discover the relationship between energy efficiency and green bond in OECD countries, (2) since our empirical part provides estimation results based on quarterly data covering the year of 2019 and 2020, it may offer some new policy implications to enhance energy efficiency financing in and post-COVID period, (3) furthermore, we consider energy efficiency indicator (mix of industrial, residential, services and transport energy efficiency) as the dependent variable instead of using the simple energy intensity variable as a proxy for energy efficiency.

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Section: Literature Reviewmentioning

confidence: 99%

Energy efficiency financing and the role of green bond: policies for post-Covid period

Rasoulinezhad

2021

CFRI

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“…Thus, from researchers and practicing professionals' perspectives, little attention has been given to research on the SFP available in the market, which have ESG criteria, and what are the features and advantages that they offer to potential users of these products. For capital users, it is essential to know these types of products because obtaining financing through sustainable financial instruments offers companies and project developers a tangible benefit in terms of lower interest rates, which positively impacts on the cost of capital [53][54][55]. Also, benefits in the granting of loans such as longer terms, longer grace periods, and special guarantees provide valuable conditions to borrowers to comply with debt servicing [56].…”

Section: Introductionmentioning

confidence: 99%

Sustainable Financial Products in the Latin America Banking Industry: Current Status and Insights

2020

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The purpose of this study is to analyse the extant literature on sustainable financial products (SFP) with a comprehensive understanding of the status quo and research trends as well as characterise the existing SFP in the Latin America banking industry. In this way, research papers derived from Scopus as well as institutional reports such as main documents, sustainability reports, and product portfolios publicly available on webpages from public, private, and development banks are used to create a database of SFP where their main characteristics are included and classified. Based on the research trends identified, the results show the development of financial products focused on environmental, social, and government (ESG) matters, mainly from the credit side, of more sustainable financial markets and products under fintech ecosystems. The results show that because of regulatory and government support through mechanisms such as green protocols and social and environmental responsibility policies, private financial institutions of Brazil, Colombia, and Argentina have led the development of both social and green financial products. These study’s findings may be used for several policymakers to broaden the opportunities available in sustainable financing and thus, provide a roadmap that researchers and practicing professionals can use to improve their understanding of SFP. Finally, the study presents the potential for further research in the field, both with a qualitative and a quantitative approach.

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“…However, there is currently no consensus among academics on the impact of finance on carbon emission reduction. Some scholars suggested that by optimizing the allocation of resources [ 31 ], green finance could guide the influx of funds into environment-friendly sectors, optimize industrial structure, and promote carbon emission reduction and economic upgrading [ 32 , 33 ]. However, some scholars, based on data from different countries, found that finance has a certain inhibitory effect on carbon emission reduction [ 34 , 35 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Green Credit and Total Factor Carbon Emission Performance—Evidence from Moderation-Based Mediating Effect Test

Cao

Niu

2022

IJERPH

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To achieve China’s new development pattern and the “dual carbon” goals, it is necessary to boost emission reduction and high-quality economic development simultaneously. Green credit (GC), consisting of environmental regulation and economic leverage, has a profound impact on improving total factor carbon emission performance (TFCEP). By selecting the panel data of 30 provinces and municipalities in China from 2001 to 2020, this paper constructs a series of panel models to analyze the transmission path of GC to TFCEP. The results indicate that the relationship between GC and TFCEP showed an “inverted-U-shaped” relationship. This is mainly because “energy-saving and emission reduction” first appeared in the government planning outline in 2006, and transition-friendly enterprises successfully transformed with low-interest green credit, thereby effectively improving their TFCEP. However, as environmental regulations continue to increase and the scale of green credit continues to expand, the efficiency of green credit allocation and internal conflicts with other environmental regulation policies are also emerging. At the same time, the advancement of industrial structure and green technology innovation had a significant mediating effect between GC and TFCEP; government quality has a strong moderating effect on the second stage of the mediating process. When GC reaches a certain scale, it tends to restrain TFCEP more in central and western China than in eastern China. Therefore, it is of great significance to continuously increase the scale of GC, promote the advancement of clean energy industrial structure, and improve green technology innovation.

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A Proposal for Green Financing as a Mechanism to Increase Private Participation in Sustainable Water Infrastructure Systems: The Colombian Case

Cited by 51 publications

References 3 publications

Energy efficiency financing and the role of green bond: policies for post-Covid period

Energy efficiency financing and the role of green bond: policies for post-Covid period

Sustainable Financial Products in the Latin America Banking Industry: Current Status and Insights

Green Credit and Total Factor Carbon Emission Performance—Evidence from Moderation-Based Mediating Effect Test

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