Urban Investment Bond and Green Financial Innovation: Literature Review and Case Studies

Abstract

 The impact of urban investment bonds on green financial innovation have been controversial. As some assume that it leads to a negative impact while some stands in the opposition. This paper reveals evidences of the effects of urban investment bonds on green financial innovation by literature review, case study, statistical analysis, and comparative study methods. The study result shows that the introduction of China’s urban investment bond with significant financing scale have filled the large funding gap in climate investment and provides efficient support for dealing with climate change issues. Saudi Arabia’s case have demonstrated its success in using urban investment bonds on the construction of NEOM New City which aims to build a smart city powered entirely by clean energy. It effectively improves sustainability and copes with environmental issues. With the findings, government and policy-makers of countries around the world should take into account with greater scale of promoting urban investment bonds to green financial innovation, which could help the economy more sustainable and cope with environmental issues around the world.