{"title":"What Do You Think about Climate Finance?","authors":"J. Stroebel, Jeffrey Wurgler","doi":"10.2139/ssrn.3898013","DOIUrl":"https://doi.org/10.2139/ssrn.3898013","url":null,"abstract":"Abstract We survey 861 finance academics, professionals, and public sector regulators and policy economists about climate finance topics. They identify regulatory risk as the top climate risk to businesses and investors over the next five years, but they view physical risk as the top risk over the next 30 years. By an overwhelming margin, respondents believe that asset prices underestimate climate risks rather than overestimate them. We also tabulate opinions about the expected correlation between growth and climate change, social discount rates appropriate for projects that mitigate the effects of climate change, most influential forces for reducing climate risks, and most important research topics.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130140352","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Green Bond Issuances and Corporate Cost of Capital","authors":"Ran Zhang, Yanru Li, Yingzhu Liu","doi":"10.2139/ssrn.3832510","DOIUrl":"https://doi.org/10.2139/ssrn.3832510","url":null,"abstract":"This study investigates the impact of issuing green bonds for environment protection initiatives on the corporate cost of capital. Accounting for nearly 2 percent of corporate bonds annual issuances during 2016-2020, in China, green bond issuance plays an essential role in sustainable development. By matching green bonds with conventional corporate bonds based on propensity matching scores, we find a 24.9 bps negative green premium on average. We hypothesize that green projects help lower the corporate cost of capital in three channels: (i) reducing information asymmetry, (ii) improving security liquidity, and (ⅲ) lowering bond issuers’ perceived risk. Our empirical findings are consistent with these expectations. Specifically, we find that the corporate cost of capital—regardless of whether it is measured by the implied cost of capital or by the weighted average cost of capital— is significantly lowered after the issuance of green bonds through these three channels. Collectively, the findings suggest a specific venue for environmental protection initiatives that affects s company’s value positively.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"70 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133055532","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Using Current Legal Tools to Achieve Net Zero Greenhouse Gas Emissions from New and Existing Federal Oil and Gas Leases","authors":"Jamie Pleune, N. Culver, J. Ruple","doi":"10.2139/SSRN.3780288","DOIUrl":"https://doi.org/10.2139/SSRN.3780288","url":null,"abstract":"Fossil fuel development on federal lands accounts for 24% of all U.S. carbon dioxide (CO2) emissions. These emissions can be reduced significantly by requiring federal oil and gas development activity to mitigate greenhouse gas (GHG) emissions. The Bureau of Land Management (BLM) has authority to define the terms and conditions of new oil and gas leases and to impose conditions of approval on existing leases at the drilling stage. Using this authority, the BLM could require net zero emissions on some existing and all new oil and gas leases without waiting for congressional action or regulatory changes. Applying existing legal tools would allow for continued energy production while a long-term climate strategy is developed, and still drive significant GHG emission reductions in the meantime. Additionally, green jobs would be created by incentivizing oil and gas operators to generate offset credits by plugging the more than 2 million orphaned or abandoned oil and gas wells that litter the landscape. Finally, the incentive to plug idle wells and retire leases early would reward operators for deciding to keep some fossil fuel resources in the ground.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121353078","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Do (Green) Innovators Respond to Climate Change Scenarios? Evidence from a Field Experiment","authors":"Jorge Guzmán, Jean Joohyun Oh, Ananya Sen","doi":"10.2139/ssrn.3737105","DOIUrl":"https://doi.org/10.2139/ssrn.3737105","url":null,"abstract":"This paper aims to unpack the pro-social motivations of green innovators. In a field experiment inviting SBIR grantees to learn more about and apply to MIT Solve, we provide scientifically valid sc...","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125507412","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
C. Hoicka, J. Lowitzsch, M. Brisbois, Ankit Kumar, L. Ramirez Camargo
{"title":"Implementing a Just Renewable Energy Transition: Policy Advice for Transposing the New European Rules for Renewable Energy Communities","authors":"C. Hoicka, J. Lowitzsch, M. Brisbois, Ankit Kumar, L. Ramirez Camargo","doi":"10.2139/ssrn.3729512","DOIUrl":"https://doi.org/10.2139/ssrn.3729512","url":null,"abstract":"Abstract The recast of the Renewable Energy Directive (RED II) provides an enabling framework for “Renewable Energy Communities” (RECs) that is being transposed into law by the 27 European Union Member States by June 2021. RECs are majority owned by local members or shareholders who are authorized to share energy within the community, offering the potential to unlock private investment and financing for renewable energy sources and provide social benefits. However, successful implementation and a just energy transition requires the coupling of technological solutions with more open decision making, based on sound analysis, knowledge of engineering, spatial planning, and social science. We argue that financing and ownership models that address renewable energy complementarity, spatial organization of resource potential, demographics, pushback from incumbents, and inclusion of traditionally marginalized groups, are common issues across all Member States that are crucial for the transposition of RED II and a just energy transition. This paper highlights the benefits and challenges of widespread development of RECs, and using examples from the pending transposition process provides policy advice for effective implementation of the RED II with respect to RECs.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126388311","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Vangelis Malamas, Thomas K. Dasaklis, Veni Arakelian, Gregory Chondrokoukis
{"title":"A Block-Chain Framework for Increased Trust in Green Bonds Issuance","authors":"Vangelis Malamas, Thomas K. Dasaklis, Veni Arakelian, Gregory Chondrokoukis","doi":"10.2139/ssrn.3693638","DOIUrl":"https://doi.org/10.2139/ssrn.3693638","url":null,"abstract":"Bonds issuance is a highly technical and complicated process, entailing mutually untrusted stakeholders with sometimes conflicting objectives. Currently, the global bond market is faced with several pain points when it comes to bond issuance, like disparate regulatory frameworks, limited traceability and auditability, settlement failures, and inefficient issuance processes. Block-chain technology is capable of addressing some of the issues mentioned above. In this paper, we propose a block-chain-enabled green bond issuance architecture. In particular, we develop an adaptable and efficient system that reduces the intermediary costs and offers compliance, scalability, confidentiality, and security. The block-chain-enabled system also acts as a transparent yet fully controllable decentralized authority where the funds of qualified, environmentally friendly projects could be traced. Our proposed architecture considers the various aspects and the complexity of the bond issuance procedures and the special requirements of green bonds. The architecture is based on a five-step model from green bond initialization to archiving. To adjust the processes of bond issuance to a block-chain-enabled model, we use digital tokens based on the ERC-20 token standard. Within the smart contracts developed, we use various functions to handle the prerequisites of validators and regulators’ approval based on the documentation presented and the parameters of rate and maturity requested by the issuer. We use a separate smart contract to implemented forensic services. The overall system also considers various regulatory compliance instruments and enhances access of regulatory bodies to issuance records. We believe that the proposed architecture could be of significant value to researchers and practitioners from the financial domain.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116749202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jorge H Maldonado, Rocio del Pilar Moreno Sánchez, Myriam Elizabeth Vargas Morales, Juan Pablo García Henao, Yurani González Tarazona, Roberto Guerrero Compeán, Maja Schling
{"title":"Análisis económico de proyectos para protección costera y restauración de ecosistemas en el Gran Caribe: métodos, desafíos e innovaciones (Economic Analysis of Coastal Protection and Ecosystem Restoration Projects in the Wider Caribbean: Methods, Challenges and Innovations)","authors":"Jorge H Maldonado, Rocio del Pilar Moreno Sánchez, Myriam Elizabeth Vargas Morales, Juan Pablo García Henao, Yurani González Tarazona, Roberto Guerrero Compeán, Maja Schling","doi":"10.2139/ssrn.3613846","DOIUrl":"https://doi.org/10.2139/ssrn.3613846","url":null,"abstract":"<b>Spanish Abstract:</b> La población costera es una de las más vulnerables a desastres naturales. El reciente reconocimiento del papel de los ecosistemas marino-costeros para reducir su vulnerabilidad ha llevado a ejecutar inversiones directas sobre estos ecosistemas. Sin embargo, la falta de conocimiento y comprensión de sus beneficios económicos ha limitado el desarrollo de estas inversiones, incluida la infraestructura natural. En este documento revisamos las principales herramientas del análisis económico para evaluar proyectos de protección y restauración costera, e identificamos las innovaciones y desafíos asociados. Con esta revisión, desarrollamos un marco analítico para el análisis económico ex ante y ex post de estas inversiones, que facilitará la identificación de los beneficios asociados a las soluciones basadas en la naturaleza para la resiliencia costera.<br><br><b>EnglishAbstract:</b> Coastal population is among the most vulnerable to disasters triggered by natural hazards. Recent recognition of the role of coastal and marine ecosystems for reducing vulnerability in coastal communities has led to incorporate direct investments in these ecosystems. However, there is a lack of knowledge and understanding of their economic benefits, and that has hindered the investments on these ecosystems, including natural infrastructure. In this paper, we analyze the main economic analysis tools for assessing protection and restauration coastal projects, and identify the innovations and challenges associated. Based on this review, we develop an analytical framework for ex ante and ex post economic analyses of these investments, what will allow the identification of benefits of nature-based solutions for coastal resilience.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127936709","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Asset Pricing and Sustainability: A Teaching Note","authors":"D. Schoenmaker, Willem Schramade","doi":"10.2139/ssrn.3539080","DOIUrl":"https://doi.org/10.2139/ssrn.3539080","url":null,"abstract":"In the transition to a sustainable economy, companies are increasingly adopting the goal of long-term value creation, which integrates financial, social and environmental value. However, investors struggle to invest for long-term value creation and perform the social function of finance. Conventional investment approaches, based on the neo-classical paradigm of portfolio theory and efficient markets, only capture financial value in their financial risk and return space. Attempts at sustainability integration through environmental, social and governance (ESG) ratings are typically too shallow to overcome this problem.<br><br>This teaching note presents an alternative investment paradigm, based on adaptive markets and fundamental analysis, that is better able to pursue long-term value creation. This long-term investment approach includes active management that assesses companies’ transition preparedness, concentrated portfolios, and deep engagement.<br><br>This teaching note can be used in courses on asset pricing. It complements asset pricing textbooks, which usually adopt the capital asset pricing model.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134330677","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Green Bonds: A Mini-Review","authors":"Wadima Al Mheiri, Haitham Nobanee","doi":"10.2139/ssrn.3538790","DOIUrl":"https://doi.org/10.2139/ssrn.3538790","url":null,"abstract":"The globalization process continues to threaten various sectors due to the associated adverse effects of climate change. Financial management has been found to have a positive correlation with sustainable practice. With many institutions increasingly expressing concerns about the reality of global warming, sustainability has become a critical tool in responding to climate changes. The objective of this mini literature review was to explore the published literature to comprehend the role of green bonds in aiding sustainability. The articles used for the analysis were obtained from two sets of databases. Twenty publications were retrieved from Scopus, an online repository with thousands of scholarly references, while the remaining five were obtained from the SSRN database. The findings revealed that green bonds are obviously used by various agencies to achieve sustainable growth, thus addressing the problem of climate change. Notably, the effective execution of financial management has the potential to enhance sustainable business operations. Critical to achieving this objective is the issuance of green bonds to finance ecologically sound projects. Nonetheless, the feasibility of green bonds in contributing to sustainability is undermined by several challenges. Some of the significant impediments include the absence of appropriate organizational arrangements, the high cost of processing transactions, and the considerable volatility clustering. The role of green bonds in aiding sustainability can be significantly improved by addressing these critical limitations.","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129585337","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Green Public Procurement: Legal Instruments for Promoting Environmental Interests in the United States and European Union","authors":"Jason J. Czarnezki","doi":"10.2139/SSRN.3504676","DOIUrl":"https://doi.org/10.2139/SSRN.3504676","url":null,"abstract":"While public environmental law, regulation and governance have paved the traditional road towards environmental and natural resource protection, the pathway has been expanded to include a broader o ...","PeriodicalId":180489,"journal":{"name":"SRPN: Green Investment (Topic)","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124173575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}