Capitalising on the Juncker Fund: Mobilising Private Climate Finance for Sustainability

Bowman, Megan

doi:10.2139/ssrn.3027529

Cited by 14 publications

(2 citation statements)

References 7 publications

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“…There is reason to hope that the European Commission commitment to developing sound ESG ratings can help avoid some of the criticisms that beset the Juncker Plan, while also improving infrastructure planning and promoting a shift towards a "circular" economy (Dreschel et al 2018;Bowman 2017;Mascotto 2020), where waste is eliminated and resources continually re-used rather than exhausted (Geissdoerfer 2017). Although some critics remain sceptical, there is a growing consensus that attention to the ESG dimension of investments heightens financial performance and protects firm value (Valente and Atkinson 2019).…”

Section: The Emergence Of "Esg" Ratingsmentioning

confidence: 99%

2. Public Investment and Capital in France

Plane¹,

Saraceno²

2020

Open Reports Series

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In chapter 2, Mathieu Plane and Francesco Saraceno take up the case of France, where public investment has seen contrasting trends in recent decades. Although it was rather dynamic until the 2000s, a real inflection took place at the turn of 2010 when the government turned to austerity, and a large part of fiscal adjustment was achieved by reducing capital expenditure. Their chapter starts by looking at the evolution of general government net wealth from the late 1970s. While still positive, the consolidated net wealth is today at an all-time low. Indeed, after reaching a record level in 2007 (58.1% of GDP) it has lost 45 points of GDP in the space of eleven years. Plane and Saraceno then focus on the evolution of the stock of non-financial assets held by the general government. Most of this is non-produced (land), and it has fluctuated greatly because of changes in prices. The stock of fixed assets, which represents the accumulation of public productive capital, has been much more stable, and it is owned mostly by local governments. The authors then focus on flows (investment), to conclude that, with the exception of intellectual property rights, all components of public investment are today at historic lows and it is “civil engineering works” that have experienced the greatest decline. For the last three years, public net investment was negative, meaning that France does not accumulate public capital anymore. In fact, since 2009 the increase of debt has not been used to finance new investment but mostly current expenditure. Finally, the chapter analyses, by means of a multi-sector macroeconomic model, the impact on growth in different macro sectors, of a permanent increase of public investment. Based on this analysis, the chapter concludes with an assessment of the public investment needs of the French economy, and, like other chapters of the Report, pleads for the introduction of a Golden Rule of public finances aimed at preserving capital expenditure.

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Section: The Emergence Of "Esg" Ratingsmentioning

confidence: 99%

2. Public Investment and Capital in France

Plane¹,

Saraceno²

2020

Open Reports Series

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Section: The Emergence Of "Esg" Ratingsmentioning

confidence: 99%

5. Trends and Patterns in Public Investment in Spain

Villaverde

Maza

2020

Open Reports Series

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In chapter 5, José Villaverde and Adolfo Maza discuss the case of Spain, which, like Italy, has experienced the most acute economic crisis since the end of the Second World War. Because of that, the country had to face some important constraints in its public finances and public investment experienced a severe blow after the outbreak of the crisis. Before the 2008 Global Financial Crisis — namely during the period 2000–2007 — Spain was the country that registered the second highest increase in public gross fixed capital formation among the five biggest European countries (France, Germany, Spain, Italy and the UK), a rate (6.8% per year) that was also much higher than that of the EU (2.3%) and the euro area (2.6%). However, over the next period, 2008–2013, the situation changed completely: public investment dropped on an annual basis at a rate close to 11%; thus, Spain suffered the most acute decline in public investment by far among the among the big five. It also emerges that public investment in Spain has been very volatile and pro-cyclical over time (with large increase periods during boom times and huge falls during recessions); investment in infrastructures always represents the main component of public investment. This implies a policy agenda towards a more anti-cyclical stance and a rebalancing of types of investments, for instance the necessity to increase the share devoted to information and communications technology (ICT).

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The EU as catalytic state? Rethinking European climate and energy governance

Prontera

Quitzow

2021

New Political Economy

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Capitalising on the Juncker Fund: Mobilising Private Climate Finance for Sustainability

Cited by 14 publications

References 7 publications

2. Public Investment and Capital in France

2. Public Investment and Capital in France

5. Trends and Patterns in Public Investment in Spain

The EU as catalytic state? Rethinking European climate and energy governance

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