Green Finance - published by AIMS Press, United States - is an international, interdisciplinary Open Access journal focusing on Green finance, Environmental, and Sustainability research and practice. Green Finance provides a platform for publishing original contributions and comprehensive technical review articles on all important green finance, green economic topics, encompassing environmental, and sustainability issues in financial enterprises, non-financial enterprises, governments, education institutions, regions, and societies, after a rigorous peer-review process. We publish the following article types: original research articles, reviews, editorials, letters, and conference reports.

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The Globethics.net Library has vol. 1(2019) to current

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  • How are urbanization, energy consumption and globalization influencing the environmental quality of the G-7?

    Laila Khalid; Imran Hanif; Farhat Rasul (AIMS Press, 2022-05-01)
    Many developed countries including G-7 became part of the Kyoto Protocol for improving their environmental quality in 2005. Its main goals were to develop national-level programs for energy conservation and the eradication of greenhouse gas emissions. To achieve such goals, certain policy measures including reduction in deforestation, urban population and promotion of renewable energy consumption were adopted. This study aims to examine the consequences of these policies on the environmental quality of G-7 from 1988 to 2018. LLC and IPS unit root tests were applied to check the stationarity of analyzed variables. The results of Pedroni and Kao's co-integration tests proved the long-run relationship between the dependent and explanatory variables. The application of multiple cross-sectional dependence tests revealed that the cross-sections are independent of each other. The findings of the panel Autoregressive distributed lag (ARDL) model exhibited that urbanization, economic growth and nonrenewable energy consumption are hampering the environmental quality. While renewable energy consumption and globalization are improving it in the long term. Urbanization, renewable and nonrenewable energy consumption significantly improve the environmental quality during the short term whereas globalization insignificantly deteriorates the environment. The study confirms the presence of reversed U environmental Kuznets curve between urbanization and carbon emissions with a turning point at 80 per cent of urbanization. The study suggests that the transformation of energy consumption from nonrenewable to renewable sources and strict compliance with environment management policies will prove prolific for improving the environmental quality of G-7.
  • Carbon Accounting: A Systematic Literature Review and Directions for Future Research

    Jillene Marlowe; Amelia Clarke (AIMS Press, 2022-01-01)
    Carbon accounting is an evolving approach to support decision-making for climate action and reporting of progress. This systematic literature review of 27 journal articles in the field of carbon accounting provides an overview of the current state of the field. It illustrates the lack of transparency, reliability, and comparability within current measurement systems; the lack of research on how greenhouse gas inventories are linked to monitoring, decision-making, reporting and disclosure systems; and the role of the accounting profession. Based on the findings, we provide a summary of where research gaps exist and thus suggestions for future research directions.
  • The role of financial resources in SMEs' financial and environmental performance; the mediating role of green innovation

    Rizwan Ullah Khan; Hina Arif; Noor E Sahar; Arif Ali; Munir A. Abbasi (AIMS Press, 2022-01-01)
    The current study investigates the influence of financial resources on environmental and financial performance with the mediating role of green practices (innovation) in manufacturing firms of the emerging economy, Pakistan. The research model and its proposed hypothesis was using 294 manufacturing firms' samples, for fruitful insights, the hypothesis was tested through a structured equation model using Smart PLS 3. Our results exhibited a positive and significant impact of financial resources on financial performance but not on environmental performance. However, green innovation fully mediates the relationship between financial resources and financial performance, while partially mediate the relationship between financial resources and environmental performance. Considering our insight, we suggest to the government that financially support the SMEs sector because they have a lack of tangible and intangible resources due to small size, and to easily adapt the green practices.
  • The impact of heterogeneous environmental regulations on the technology innovation of urban green energy: a study based on the panel threshold model

    Xueying Xu; Peng Hou; Yue Liu (AIMS Press, 2022-02-01)
    Since the Porter hypothesis was proposed, environmental regulation has been recognized as a critical factor influencing technology innovation. However, there is no unified conclusion on whether the relationship between the two is linear or non-linear, and environmental regulation is always examined from single angles. Therefore, according to the difference of environmental regulation implementation subjects, this paper divides environmental regulation into formal regulation and informal regulation. Utilizing the panel data of 281 prefecture-level and above cities in China from 2011-2019, the non-linear effects of heterogeneous environmental regulations on green energy technology innovation are analyzed based on the panel threshold model, and the non-linear relationship between the two under the difference in urban economic development level is further considered. The results indicate that: (1) The threshold effect of the environmental regulations on China's green energy technology innovation is significant, and there is heterogeneity in the effects of different environmental regulations. (2) At present, positive relationship are observed between the informal environmental regulation and green energy technology innovation in China, while the formal environmental regulation exerts a significant inhibitory effect on green energy technology innovation. (3) The level of regional economic development plays a significantly positive role in moderating the relationship between environmental regulation and green energy innovation. However, there exists a certain heterogeneity in the moderating role between the formal regulation-innovation link and informal regulation-innovation relationship. This study provides a reference for further clarifying the relationship between heterogeneous environmental regulations and green energy technology innovation.
  • Growing items inventory model for carbon emission under the permissible delay in payment with partially backlogging

    Karuna Rana; Shiv Raj Singh; Neha Saxena; Shib Sankar Sana (AIMS Press, 2021-05-01)
    Growing inventory is the set of commodities whose level enhances during the stocking period. This kind of product is normally seen in the poultry industry and livestock farming. In this model, the live newborn is considered to be the initial inventory of the retailer. These are procured and fed until they grow to an ideal weight during the breeding period. Afterward, these are slaughtered and converted to deteriorating items prone to the customer's demand during the consumption period. The poultry industry is responsible for greenhouse gas emissions during feeding, farming, slaughtering, and handling. Consequently, the retailers are enforced to make efforts to reduce the emission which also affects the inventory demeanor. Therefore, the effect of the carbon emissions from the poultry industry has been investigated here. Generally, customers prefer food over the preserved items so shortages are permitted which has been assumed here with partial backlogging. The study has been carried out to investigate the optimum breeding period and optimum livestock inventory. A numerical example and illustrations validate the analytical results. Lastly, a sensitivity analysis has been provided concerning some key parameters.
  • The impact and mechanism of fintech on green total factor productivity

    Yanyan Yao; Dandan Hu; Cunyi Yang (AIMS Press, 2021-06-01)
    The key to balancing economic transformation and improving quality development is financial supporting green development. The relationship between financial technology (fintech) and green development has gradually emerged recently. Based on the data of 35 major cities in China from 2015 to 2019, the fintech development index and green total factor productivity (GTFP) are obtained by adopting web crawler technology and Bootstrap-SBM-GML model respectively; further, the impact of urban fintech level on GTFP is also revealed by taking the financial support policy index (FSP) as the instrumental variable. The empirical research shows the following results. First, the level of fintech and financial support policy indicators show a steady upward trend in the study period; whereas the tendency of GTFP is not obvious. Second, the urban fintech level has a significant promoting effect on GTFP through FE, MM-QR and 2SLS models. Specifically, the promoting effect mainly comes from the promotion of technological change (TC) of the GTFP decomposition index; the promoting effect will be greater in the lower cities of green development level. Third, industrial structure upgrading (UIS) and technological innovation (TI) play an intermediary role in the green development effect of fintech. Four, the green development effect of fintech is heterogeneous. Specifically, the green development effect of fintech on GTFP is larger in the central and western regions and low-level cities; whereas it is smaller in the eastern part regions and high-level cities.
  • Cost-benefit analysis in a climate of change: setting social discount rates in the case of Ireland

    Tadhg O'Mahony (AIMS Press, 2021-05-01)
    The global practice of Cost-Benefit Analysis (CBA), to analyse the welfare impacts of public investments, has undergone profound changes in recent years. The reforms in general practice have primarily been driven by the discussions of the implications of climate change and environmental degradation. Central to the discussion has been the social discount rate, used to value future costs and benefits in the present, and also the dual discount rates for "environmental goods", as goods that are of no, or of risky substitution. Official rates, in many nations, are calculated using the "Ramsey" formula. The literature has explored the relevant factors in this formula, but with less attention paid to the selection of the rate of future growth in consumption, or to the setting of dual discount rates in national practice guidance. Through considering the case of Ireland, this study demonstrates that the selection of growth rates in consumption, in the context of future uncertainty, requires the use of plausible scenarios, rather than historical trends or forecasts. By employing economic scenarios, alongside established values for the other factors, the main discount rate for Ireland is calculated in a range of 1.7 to 2.8 per cent. Seperately, a dual discount rate, for capital that cannot be replaced, is estimated at ≤1.3 per cent. The main discount rate is validated by comparison against discount rates found in the literature, applied in other comparable nations, and by the rate estimated from the real yield on government bonds. All four independent lines of evidence support the range estimated. This demonstrates that the Irish government's estimated discount rate, of 4.0 per cent, is not credible, and needs reduction, alongside introduction of dual discounting.
  • Research on the impact of finance on promoting technological innovation based on the state-space model

    Mengxin Wang; Ran Gu; Meng Wang; Junru Zhang (AIMS Press, 2021-04-01)
    Finance has an important influence on technological innovation (TI). There are several stages of, as well as various financial constraints on, TI. In this article, we divide TI into four stages: the development, growth, maturity, and decline stages. Concurrently, we classify TI funding sources into five types: enterprise funds, government funds, venture capital funds, loans from financial institutions, and capital market funds. Based on the analysis of the stages and financing constraints of TI, this paper constructs a state-space model to study the effects of various funding sources on TI in Hebei Province, China, from 2005 to 2018. The results show a long-term equilibrium relationship between finance and TI, whereby different financial methods have different effects on each stage of TI. Enterprise funds play a primary role in the development, growth, and maturity stages. Government funds play a prominent role in the development and growth stages. Capital market funds and loans from financial institutions only play a role in the maturity period. The role of capital market funds was positive, while that of loans from financial institutions was negative. The effect of venture capital was not noticeable at any stage. Finally, we give our conclusions and put forward some countermeasures and suggestions to promote TI in Hebei Province.
  • Impacts of the financialization of manufacturing enterprises on total factor productivity: empirical examination from China's listed companies

    Siming Liu; Xiaoyan Shen; Tianpei Jiang; Pierre Failler (AIMS Press, 2021-04-01)
    This paper examines the effects and mechanism of the financialization of manufacturing enterprises on total factor productivity (TFP). Thus, it provides evidence of the economic consequences of corporate financialization from the perspective of productivity. Using the panel data of China's listed manufacturing companies from 2007 to 2018, the level of corporate financialization is measured using the proportion of financial assets in the total assets. The results show that the deepening of the financialization of manufacturing enterprises significantly reduces TFP and the magnitude of the impacts of different types of financial assets variates. In addition, the effects of corporate financialization on TFP are heterogeneous in terms of their significance and degrees in different types of enterprises as well as in different levels of enterprises' TFP. The further analysis of the influencing mechanism shows that corporate financialization has different effects on the TFP of manufacturing enterprises through technological innovation and resource allocation efficiency.
  • Financing the future infrastructure of sustainable energy systems

    Reinhard Haas; Amela Ajanovic; Jasmine Ramsebner; Theresia Perger; Jaroslav Knápek; Jan W. Bleyl (AIMS Press, 2021-04-01)
    The development of suitable financing models plays an important role for long-term investments in green energy infrastructures necessary to achieve energy and climate targets. In this context, it is important to state that people do not demand energy per se, but energy services such as mobility, heating, cooking and lighting. These services are provided by a combination of different energy carriers and technologies. In this paper, the focus lies on the optimal financing of innovative technologies from the society's point-of-view. Therefore, long-term financing models of new energy solutions play a key role in three core areas: (ⅰ) investments in renewable energy technologies, e.g., large solar thermal, PV, wind power systems, (ⅱ) investments in new network infrastructure for electricity, district heating, hydrogen, charging stations for battery electric vehicles, etc.; (ⅲ) investments in energy efficiency. In this paper we observe that there is practically no degree of freedom in the market regarding choice of financing parameters such as interest rate and depreciation time. In real life, all long-term investments, e.g., in the area of electricity or district heating networks, are located in a strictly regulated environment.
  • Responsible consumption and production in the European Union. A partial order analysis of Eurostat SDG 12 data

    Lars Carlsen (AIMS Press, 2021-04-01)
    The UN Sustainable Development Goal 12, responsible consumption and production, is a key element in a sustainable development of our planet as it is closely linked to the exploitation of renewable and non-renewable resources. The present study focuses on five main indicators selected by Eurostat as key factors for the development of the SDG 12, i.e., 1: resource productivity, 2: average CO2 emissions from new passenger cars, 3: circular material use rate, 4: generation of waste excluding major mineral wastes and 5: consumption of toxic chemicals for the 27 member states of the European Union, the data being analyzed applying partial ordering methodology that constitutes an advantageous decision support tool. Based on the first 4 indicators the 27 EU member states have been mutually ranked finding France, Italy, and Malta as the best and Bulgaria and Estonia as the worst among the 27 countries in complying with the SDG 12 targets. Studying the temporal development, a slightly positive tendency was observed. The most important indicator, looking at the whole EU appears to be the generation of waste, whereas, e.g., the CO2 emission apparently is the key issue for France and Bulgaria, whereas the circular material use rate is the most important in the case of Greece. The temporal development of the consumption of toxic chemicals was separately analyzed disclosing that the amount of non-toxic waste has increased whereas a decrease in chemicals hazardous to human health and to the environment was noted. The results constitute important for authorities and regulator in their effort to select actions in order better to comply with the SDG 12 targets.
  • Impact of COVID-19 on energy prices and main macroeconomic indicators—evidence from China's energy market

    Yilin Wu; Shiyu Ma (AIMS Press, 2021-09-01)
    With the COVID-19 pandemic sweeping the world, the development of China's energy industry has been hampered. Although previous studies have shown the global influence of COVID-19 on energy prices and macroeconomic indicators, very few of them examined the impact on China independently, considering the special role of China in this pandemic and economy. In this study, we investigate the impact of the pandemic on several major China energy prices using the ARIMA-GARCH model. Combined with the Value-at-Risk (VaR) theory, we further explore the market risk, which indicates an increase in the tail risk of energy price volatility and the dramatic turbulence in energy markets. In addition, a Vector Autoregressive (VAR) model is developed to analyze how the main macroeconomic indicators are affected when energy prices fluctuate. According to the model results, energy price fluctuations caused by the COVID-19 have a negative impact on economic growth and inflation, with a higher contribution to the latter changes. Based on the modeling analysis results, this paper makes constructive suggestions on how to stabilize energy prices and recover the economic development in the context of the COVID-19 pandemic.
  • Actors in customary and modern trade of Caterpillar Fungus in Nepalese high mountains: who holds the power?

    Basant Pant; Rajesh Kumar Rai; Sushma Bhattarai; Nilhari Neupane; Rajan Kotru; Dipesh Pyakurel (AIMS Press, 2020-12-01)
    This paper assesses the supply chain of Yartsagunbu (Caterpillar Fungus) in Darchula district of Nepal to identify who holds the power and how they gain power for management and marketing. We recorded two types of supply chain: (ⅰ) open supply chain, driven by open market, where the product is transported to Kathmandu before export to international market, and (ⅱ) close chain practiced by indigenous Shauka community following customary trade route to Tibet. The open chain is longer with higher number of actors compared to the close chain. This study observed that actors have intensive horizontal competition in the open chain to collect and purchase maximum quantity. Therefore, profit is disproportionately distributed to the actors in higher level of the supply chain. The profit is based on the price the actor receives, which is determined by their bargaining power. An actor's bargaining power is determined by the capital holding capacity, market information, risk appetite, networking and social ties. The study suggests that Government's interventions such as providing security to traders, access to finance, organizing auction and providing market information can help to increase the bargaining power of lower level actors. The study also suggests to minimize the disturbance in the collection site through limiting the collection permit and revising the revenue based on the market price.
  • How vulnerable is the fiscal posture in Turkey?

    Cansın Kemal CAN (AIMS Press, 2021-08-01)
    This study gauges the degree of fiscal vulnerability in Turkey by calculating the debt stabilising primary balance level and evaluates how this variable measures up against the actual primary balance levels for the 1978–2019 period. Based on this comparison, we build up a fiscal fragility index using the methodology described in Stoian (2012). In addition, the Toda-Yamamoto causality test is carried out to detect the direction of causality among these two variables. The index-based analysis reveals that the fiscal performance of Turkey was chiefly satisfactory for the estimation period. Also, the Toda-Yamamoto causality test results imply a unidirectional causality from the required primary balance to real primary balance, suggesting that the government uses the primary balance to stabilise fiscal imbalances, which is an affirmative effort by the government to restore fiscal sustainability. Nevertheless, notwithstanding the implementation of corrective fiscal actions to preserve stability, the index value is steadily moving up in recent years, indicating a mounting fiscal vulnerability risk. Back-loading fiscal adjustments involving spending cuts, full-fledged tax reform, proper scrutiny of public expenses, etc., are among the prominent policy options available to the government to alter the ongoing unfavourable trend in the fiscal vulnerability index.
  • Towards the attainment of sustainable development goal 7: what determines clean energy accessibility in sub-Saharan Africa?

    Paul Adjei Kwakwa; Frank Adusah-Poku; Kwame Adjei-Mantey (AIMS Press, 2021-08-01)
    Access to clean energy is necessary for environmental cleanliness and poverty reduction. That notwithstanding, many in developing countries especially those in sub-Saharan Africa region lack clean energy for their routine domestic activities. This study sought to unravel the factors that influence clean energy accessibility in sub-Saharan Africa region. Clean energy accessibility, specifically access to electricity, and access to clean cooking fuels and technologies, were modeled as a function of income, foreign direct investment, inflation, employment and political regime for a panel of 31 sub-Saharan countries for the period 2000–2015. Regression analysis from fixed effect, random effect and Fully Modified Ordinary Least Squares show that access to clean energy is influenced positively by income, foreign direct investment, political regime and employment while inflation has some negative effect on its accessibility. The policy implications from the findings among other things include that expansion in GDP per capita in the sub-region shall be helpful in increasing accessibility to clean energy. Moreover, strengthening the democratic institutions of countries in the region shall enhance the citizens' accessibility to clean energy. Ensuring sustainable jobs for the citizens is necessary for access clean energy.
  • Does corporate financialization affect EVA? Early evidence from China

    Manrui Xu; Khaldoon Albitar; Zhenghui Li (AIMS Press, 2020-12-01)
    This paper aims to examine the impact of corporate financialization on economic value added (EVA). The panel regression model and threshold effect model are used based on data from 913 Chinese A-share listed companies between 2007 and 2016. The results show that the proportion of financial channel profit has a significant negative effect on EVA. Furthermore, the moderate range in the impact of the corporate financialization level on EVA is also captured. Besides, the impact of corporate financialization on EVA is heterogeneous among industries with intensity factor differences. The results of this study are very relevant to investors and managers. For instance, corporate financial management can be adjusted and supervised according to the moderate range and direction. The government should combine industry characteristics to create different support policies.
  • Bridging the gap: organisational value frames and sustainable alliance portfolios

    Tulin Dzhengiz (AIMS Press, 2020-12-01)
    Research on sustainability-oriented partnerships focused either on inter-firm or cross-sector partnerships separately and often took the partnership as a level of analysis. As opposed to the partnership level, the firm-level analysis that investigates portfolios of sustainability-oriented partnerships were brought forward by only a few studies. By drawing on the literature of alliance portfolios, this paper builds the notion of "sustainable alliance portfolio" further to move scholarly attention towards the bigger picture of firms' partnership efforts for sustainability. Taking stock on the research that introduced organisational cognition to corporate sustainability which showed how partners' value frames co-evolve, converge, diverge or fuse over time; this paper theorises how business case and paradoxical frames impact the configuration, management and development of sustainable alliance portfolios. Overall, this paper bridges the gap between two constructs-organisational value frames and sustainable alliance portfolios- and offers propositions for future research to draw attention to the under-theorised portfolios of sustainability-oriented partnerships.
  • Mobile banking during COVID-19 pandemic in Bangladesh: A novel mechanism to change and accelerate people's financial access

    Most Nilufa Khatun; Sandip Mitra; Md Nazirul Islam Sarker (AIMS Press, 2021-07-01)
    Limited access to financial services is considered as a vital bottleneck for curbing poverty in Bangladesh. Digital technology such as mobile banking can contribute to accelerate people's access to finance but did not receive proper attention before COVID-19. This study intends to explore the use of mobile banking services to accelerate people's financial access in Bangladesh due to the emergence of the COVID-19 pandemic by using secondary data. Mainly documentation techniques and descriptive statistical methods are used to collect and analyze the data. The study reveals that the number of registered mobile banking customers has escalated during the COVID-19 era. Mainly government policies regarding different mobile banking transactions such as cash in, cash out, person to person (P2P) transaction, salary and utility bill payments etc., have significantly contributed to rise the people's digital financial access during this pandemic. People's changing habit towards digital transactions has also contributed to increasing their financial access. The government should provide a convenient financial access platform to create a cashless society in the country.
  • Growth, environmental change and business cycles in a multi-regional economy

    Wei-Bin Zhang (AIMS Press, 2019-08-01)
    The purpose of this is to examine multi-regional dynamics with wealth and pollutant accumulation over time. The paper generalizes the dynamic model by Zhang (2016). It treats regional amenities endogenous variables dependent on the region’s population and level of pollutants. Regional differences in productivities and amenities are important for modelling regional agglomeration. The government decides environmental tax rates on production, consumption, wealth, income from wealth and housing. The economy is perfectly competitive. The dynamics of -region economy is described by differential equations. We demonstrate business cycles due to different exogenous periodic perturbations in the multi-regional economy

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