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.


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

Recent Submissions

  • Insuring a greener future: How green insurance drives investment in sustainable projects in developing countries?

    Goshu Desalegn (AIMS Press, 2023-06-01)
    Insurance companies are responding to the global challenge of climate change by introducing green insurance policies, which aim to promote sustainable projects across the globe. These policies offer financial protection and coverage for initiatives related to renewable energy, energy efficiency and other sustainable endeavors. Moreover, they incentivize investment in these projects by providing lower premiums or other financial benefits. In order to assess the impact of green insurance policies on driving investment in sustainable projects in developing countries, this study employed a systematic and bibliometric approach to thoroughly analyze the various forms, instruments, and measurements of green insurance. The study used 490 documents extracted from different databases. The search strategy involved using specific keywords to query the Web of Science, Scopus, science direct, and google scholar databases. A purposive sampling technique was implemented for data inclusion and exclusion. The study's findings indicate that the success of green insurance in developing countries faces several challenges, including inadequate infrastructure, limited awareness and education among individuals and businesses, absence of supportive regulatory frameworks and policies, insufficient demand, political instability, corruption and security concerns. Furthermore, the study finding reveals a need for more research, specifically exploring the effects of green insurance on investment in sustainable development. Hence future studies can use this finding as a benchmark for further studies. The study's novelty lies in its comprehensive analysis of green insurance policies and their impact on driving investment in sustainable projects in developing countries. Based on the findings, the study recommends that insurance companies offer incentives to investors involved in sustainable projects, such as employing premium shifting strategies that minimize premiums for non-environmentally sustainable projects and redirect those funds toward sustainable initiatives.
  • International cooperation on climate research and green technologies in the face of sanctions: The case of Russia

    Mark Shugurov (AIMS Press, 2023-05-01)
    The purpose of this study was to develop the theoretical model for the regime of anti-Russian sanctions against the climate R&D sector, as well as the related green finance sector. Achieving this purpose was carried out on the basis of using the system of the following methods. 1) A method of discursive analysis was applied to texts and statements that occur in scientific articles, analytical reviews and notes in electronic media and discussion pages on the Internet. 2) Meta-analysis was applied to both original works and to primary materials of an empirical nature containing statistical data, which are sometimes of a variable nature. 3) The methodology of stochastic factor analysis served as the basis for considering sanctions as factors that probabilistically determine various changes in Russian science and technology policies and science legislation. 4) The use of the foresight method was aimed at identifying options for the medium- and long-term development of Russia's participation in international cooperation in the field of climate R&D while under sanctions. According to the developed model, the regime of scientific sanctions against Russia is aimed at breaking cooperation with Russian participation at the level of programs and projects. The institutionalization of scientific ruptures has several aspects, such as the freezing of personal contacts, the suspension of funding, as well as the supply of equipment and the provision of services for its maintenance. The peculiarity of scientific sanctions against Russia lies in the unprecedented combination of the national and global scales of their consequences. The study concludes that, due to Russia's significant contribution to climate change, the consequences of scientific, economic and financial sanctions have a negative cumulative effect on the implementation of the global climate agenda. This means the emergence of problems in reducing greenhouse gas emissions due to the partial abandonment of previously formulated climate goals. The model proposed in this study reveals Russia's response to sanction challenges, which means that Russia continues to follow the trend in the development of climate science and improve the institution of green finance.
  • Cultural context, organizational performance and Sustainable Development Goals: A pending task

    Ana Bellostas; Cristina Del Río; Karen González-Álvarez; Francisco J López-Arceiz (AIMS Press, 2023-06-01)
    The collaboration of private companies in the fulfillment of the Sustainable Development Goals (SDGs) is key to address global challenges of climate change, social inequality and environmental degradation. This collaboration can also boost their own organizational performance. However, the research on the relationship between SDG commitment and organizational performance remains inconclusive. The diversity of findings could stem from cross-cultural differences in corporate environments. The aim of this study, therefore, was to analyze the interaction between SDG commitment and organizational performance and to examine how this interaction is influenced by cultural factors. Using simultaneous equation modeling on a sample of 3,420 companies from 30 countries for the period 2015 to 2020, our results show that engagement with SDGs has an impact on organizational performance levels which is further enhanced by the catalytic effect of certain cultural factors.
  • Corporate social responsibility toward employees and green innovation: Exploring the link in the tourism sector

    Jacob Guinot; Zina Barghouti; Inmaculada Beltrán-Martín; Ricardo Chiva (AIMS Press, 2023-06-01)
    In recent years, the concept of corporate social responsibility toward employees (CSRE) has gained increasing importance, both in academic research and in managerial practice. This concept includes those human resource policies aimed at improving employee satisfaction. In this paper, we build on previous research on CSRE by examining its relationship with organizational learning capability (OLC). In addition, to shed light on the link between CSRE and OLC, we introduce explanatory variables such as organizational commitment. In turn, we analyze if OLC may simultaneously increase green innovation (GI). These relationships were tested using structural equation modeling on a sample of 300 companies in the tourism sector. Results confirm that organizational commitment mediates the relationship between CSRE and OLC, and this in turn positively affects GI. These findings uncover an unexplored route to create more sustainable business through organizational behaviors and attitudes promoted by CSRE.
  • The state of the 'Prosperity' pillar by 2022: A partial ordering-based analysis of the sustainable development goals 7–11

    Lars Carlsen (AIMS Press, 2023-04-01)
    Based on the data provided in the 2022 Sustainable Development Report the so-called Prosperity pillar, i.e., the Sustainable Development Goals (SDGs) 7–11 is studied to elucidate the state of compliance as well as the trends in development for the 193 countries included in the report. To the extent that data for all five SDGs were available partial ordering methodology was applied to rank the countries according to their compliance as well as their trend toward compliance. The analyses took simultaneously data for all five SDGs into account to get an overall picture of the prosperity midway through the 15 years period for the 17 UN SDGs. It was disclosed that the ten top countries, i.e., presently best comply with the prosperity goals were Denmark > Austria = Finland = Sweden = Norway > Slovenia > Germany > Portugal > Japan > Iceland, respectively. In the case of the trends, the top ten countries were found to be Germany > Netherlands > Ecuador > Bhutan = Finland = Ireland = Slovak Republic > Czech Republic = Maldives = Malta, respectively. It was further disclosed that SDG 10 (Reduced inequalities) appeared as the most important indicator for the ranking, whereas SDG 9 (Industry, innovation, and infrastructure) appeared as the least important. A similar set of analyses was carried out for country regions. The top regions both in the case of states and trends were the OECD and the high-income countries whereas the bottom of the list was the low-income countries and Africa. The study unambiguously points to SDG 10 (reduced inequalities) as the main focus for the remaining period.
  • Financing low-carbon hydrogen: The role of public policies and strategies in the EU, UK and USA

    João Moura; Isabel Soares (AIMS Press, 2023-06-01)
    The goal of this study is twofold: first, to understand the rationales of public policies and possible outcomes on energy systems design behind supporting national hydrogen strategies in three major economic blocs (the EU, UK and USA) and possible outcomes on energy systems design; second, to identify differences in policy approaches to decarbonization through H2 promotion. Large-scale expansion of low-carbon H2 demands careful analysis and understanding of how public policies can be fundamental drivers of change. Our methodological approach was essentially economic, using the International Energy Agency (IEA) policy database as a main information source. First, we identified all regional policies and measures that include actions related to H2, either directly or indirectly. Then, we reclassified policy types, sectors and technologies to conduct a comparative analysis which allowed us to reduce the high degree of economic ambiguity in the database. Finally, we composed a detailed discussion of our findings. While the EU pushed for renewable H2, the UK immediately targeted low-carbon H2 solutions, equally considering both blue and green alternatives. The USA pursues a clean H2 economy based on both nuclear and CCS fossil technology. Although there is a general focus on fiscal and financing policy actions, distinct intensities were identified, and the EU presents a much stricter regulatory framework than the UK and USA. Another major difference between blocs concerns target sectors: While the EU shows a broad policy strategy, the UK is currently prioritizing the transport sector. The USA is focusing on H2 production and supply as well as the power and heat sectors. In all cases, policy patterns and financing options seem to be in line with national hydrogen strategies, but policies' balances reflect diverse institutional frameworks and economic development models.
  • Does corporate reputation play a mediating role in the association between manufacturing companies' corporate social responsibility (CSR) and financial performance?

    Zhang Jing; Gazi Md. Shakhawat Hossain; Badiuzzaman; Md. Shahinur Rahman; Najmul Hasan (AIMS Press, 2023-06-01)
    The main objective of this research was to analyze the variable of corporate reputation as a mediating variable to determine the relationship between corporate social responsibility and financial performance. Simple random sampling was used in the study to obtain 300 respondents from Bangladeshi manufacturing companies. Statistical Package for the Social Sciences (SPSS) 23.0 was used to analyze the data. To evaluate the hypotheses in this study, structural equation modeling (SEM) was used. The results demonstrated that corporate social responsibility positively influences corporate reputation and financial performance, while corporate reputation is statistically significant for financial performance. Environmental contribution, philanthropic responsibility, legal responsibility, ethical responsibility, economic responsibility and social responsibility are listed in order of significance as corporate social responsibility factors. It was determined how corporate reputation influences the link between corporate social responsibility and financial performance. However, it may be logical to conclude that there is a considerable correlation between corporate social responsibility and financial performance based on the data analysis. The results of corporate social responsibility practices in manufacturing organizations in developing nations, particularly Bangladesh, have significant consequences for businesses, entrepreneurs, communities, researchers and policymakers in understanding the outcomes of sustainability. The conclusion has drawn implications for sustainability practice and future research.
  • Prospects of green financing in democratic societies

    Hans Bennink (AIMS Press, 2023-06-01)
    Financing ecological and other grand global challenges is faced with intertwined issues at both the institutional side and the public side as elements of the tragedy of the quintuple horizons. These horizons are approached from a systemic perspective, with attention on the key players involved. Starting with (system) banks, their conservative attitude is explained in terms of the iron cage theory. Next, green challenges are pictured as 'very wicked' problems, varying in moral intensity. The conflicting roles of the public as citizens and as consumers are described in terms of Kohlberg's theory of cognitive moral development. Responsibilities for future generations are clarified by distinguishing the responsibility as accountability and the responsibility as virtue. Assignments for a green future are explored from the perspective of green financing with a focus on what should be expected from the public at large in multiparty democratic societies, keeping in mind that other societies are characterized by diverting economic and political dynamics, and hence, other modes of operating1. 1 See, for instance, for China: Macaire & Naef (2022) and Liu, Wang, Zhang & Zhang (2019).
  • Green bond market boom: did environmental, social and governance criteria play a role in reducing health-related uncertainty?

    Vitor Miguel Ribeiro (AIMS Press, 2023-01-01)
    Recent years have been characterized by considerable growth of the green bond market in Europe, particularly in the domain of social bond issuance. Considering the recent pandemic, it is also a stylized fact that this growth is positively correlated with the concept of health-related uncertainty, as the green bond market aims to acquire financing in order to allow the development of projects that comply with the so-called environmental (E), social (S) and governance (G) criteria. This study then applies a dynamic spatial econometric analysis and several robustness checks to assess the extent to which each E, S and G criterion contributes to the societal dynamics of health-related uncertainty. The analysis takes advantage of available data on the number of confirmed cases of COVID-19 to measure health-related uncertainty at the municipal level, so that a higher (lower) number of confirmed cases constitutes a proxy for a greater (smaller) degree of uncertainty, respectively. To reinforce the need to evaluate impacts in a context characterized by health-related uncertainty, the time span covers the first wave of COVID-19, which is the period when uncertainty reached its highest peak. Additionally, the geographical scope is mainland Portugal since this country has become a breeding ground for startups and new ideas, being currently one of the world leaders in hosting businesses that reached Unicorn status. The main result of this research is that only the social dimension has a significant, positive and permanent impact on health-related uncertainty. Therefore, this study empirically confirms that the European green bond market has been and can be further leveraged by the need to finance projects with a social scope.
  • Determinants for the adoption of ISO 14001: the case of Portuguese firms

    Valter Franco; Susana Silva; Erika Laranjeira (AIMS Press, 2023-02-01)
    Climate change and the consequent increase in society's environmental awareness have triggered new forms of pressure on companies and the way they face environmental sustainability. Hence, either by legal imposition or by other types of pressures, companies must incorporate the environmental impact of their activities into their responsibilities, without compromising their financial viability. Environmental certification is a common procedure for firms to improve their environmental performance, as well as increase their reputation and image. Notwithstanding, determinants for environmental certification are still poorly understood. Therefore, the present study aims to assess, from a sample of 1,917 Portuguese companies of various sectors and dimensions, the influence of some factors on the probability of a firm adopting the ISO 14001 certification. Results showed that the different variables used as measures of profitability of the firm have a positive impact on its probability of adopting ISO 14001. Other factors with the same effect include the participation of the firm in the stock market and the firm's size. This can be justified by a greater need for large firms to improve their reputation or to have access to some markets where this kind of certification is an obligation. However, it is also possible to observe a certain variation in results depending on the measures of profitability used. Another conclusion is that the fact that a firm is an exporter does not influence its probability to be certified in any of the specifications, something contrary to what has been found in the literature.
  • Green finance engagement: An empirical study of listed companies on Chinese main board

    Yicong Huang; Kaidong Yu; Chao Huang (AIMS Press, 2023-01-01)
    Using textual analysis, this paper divides green finance into green initiatives and green business activities. The former discusses whether environmental initiatives shall be signed, while the latter explores whether various emerging green commodities and services are provided. This paper investigates the influence of corporate size, the degree of internationalization, profits and competitiveness on the engagement degree of green finance, according to data collected from 410 Chinese listed companies on the Shanghai Stock Exchange. The results show that corporate size exerts a positive influence on green initiatives, and that the degree of internationalization, profits and corporate competitiveness of an enterprise each have a significant effect on green business activities. In addition, profits have a negative influence on green business activities. This paper provides insights and suggestions for developing green business activities in China.
  • Sustainability, Environmental Responsibility and Innovation

    Khaldoon Albitar; Khaled Hussainey (AIMS Press, 2023-03-01)
  • Exploring the impact of green HRM practices on pro-environmental behavior via interplay of organization citizenship behavior

    Abdul Samad Kakar; Mrestyal Khan (AIMS Press, 2022-07-01)
    Using Green human resource management practices (HRMPs) as a multi-component construct, this study investigated the influence of bundle of Green HRMPs on pro-environmental behavior (Pro-EB) and organizational citizenship behavior towards the environment (OCBE), and examined the mediating effect of OCBE as a psychological mechanism that defines Green HRMPs and Pro-EB relationships. Data were obtained using self-administered questionnaires from a sample of 247 full-time academics working in public sector higher education institutions of Pakistan. The hypotheses were verified using partial least squares structural equation modelling (PLS-SEM). The results revealed that Green HRMPs bundle had a significant and positive effect on both Pro-EB and OCBE, and OCBE, in return, had a positive relationship with Pro-EB. It was further revealed that OCBE positively mediated the association between Green HRMPs bundles and Pro-EB. The originality of the study lies in conceptualizing Green HRMPs bundles as a multi-component construct and examining the relationships between Green HRMPs bundle, OCBE, and Pro-EB in the context of Pakistan's higher education institutions. Besides, exploring OCBE as a mediator between Green HRMPs bundles and Pro-EB is one of the novel contributions of this study. This study helps management and practitioners in developing Green strategies that can promote Green and Pro-EB among academics/faculty members.
  • Sustainable investment strategies and a theoretical approach of multi-stakeholder communities

    Hiroshige Tanaka; Chiharu Tanaka (AIMS Press, 2022-09-01)
    The digital industrial revolution continues to expand the global network of economies and societies. Nevertheless, difficulties of sustainability such as climate change and disruption have become more severe. Multi-stakeholders are crucially important to resolve difficulties posed to sustainability in global communities. Sustainable communities are expected to be constructed through competitive and cooperative schemes of multi-stakeholders. Sustainable global communities must reform centralized economies with top down systems and must move toward decentralized mechanisms known as bottom-up societies. Sustainable investment strategies to support environment, society and governance (ESG) presumably improve social welfare. The main findings presented herein are summarized as explained hereinafter. First, this article describes that multi-stakeholders can introduce a decentralized incentive scheme into global economies and can provide mathematical expressions of sustainable investment strategies. Secondly, the decentralized formulation described herein is used to evaluate the improvement of ESG initiatives by the decrease of social welfare losses. The formulation states mathematically relative relations among the investment strategies. Thirdly, this mathematical model explores the social welfare effects of initiatives to enhance standards, regulations, and legislations. Empirically, one finds that integration strategies have grown remarkably as a core part of social institutional reform for sustainability. Finally, initiatives to improve social evaluation by individuals who are excluded from market transaction are demonstrated to decrease social welfare losses greatly. These findings can promote initiatives to alleviate the disruption difficulties faced by communities.
  • Technological industry agglomeration, green innovation efficiency, and development quality of city cluster

    Pengzhen Liu; Yanmin Zhao; Jianing Zhu; Cunyi Yang (AIMS Press, 2022-10-01)
    Technological progress, especially green innovation, is a key factor in achieving sustainable development and promoting economic growth. In this study, based on innovation value chain theory, we employ the location entropy, super-efficiency SBM-DEA model, and the improved entropy TOPSIS method to measure the technological industry agglomeration, two-stage green innovation efficiency, and development quality index in Yangtze River Delta city cluster, respectively. We then build a spatial panel simultaneous cubic equation model, focusing on the interaction effects among the three factors. The findings indicate: (1) There are significant spatial links between the technological industry agglomeration, green innovation efficiency, and development quality in city cluster. (2) The development quality and technological industry agglomeration are mutually beneficial. In the R&D stage, green innovation efficiency, development quality, and technological industry agglomeration compete with each other, while there is a mutual promotion in the transformation stage. (3) The spatial interaction among the three factors reveals the heterogeneity of two innovation stages. The positive geographical spillover effects of technological industry agglomeration, green innovation efficiency, and development quality are all related to each other. This paper can provide a reference for the direction and path of improving the development quality of city clusters worldwide.
  • A systematic review of green finance in the banking industry: perspectives from a developing country

    Shahinur Rahman; Iqbal Hossain Moral; Mehedi Hassan; Gazi Shakhawat Hossain; Rumana Perveen (AIMS Press, 2022-09-01)
    Globally, scholars and practitioners are becoming increasingly interested in determining the interaction between finance and environmental sustainability. However, a few studies have investigated and organized existing information in the context of the green finance of banks in developing countries. The purpose of our study is to find major dimensions of green finance and research gaps from a thorough evaluation of the literature. As a result, existing research on green finance in the banking industry has been evaluated in this paper with a focus on green finance and sustainable development. This study employs the content analysis method and it analyzes and summarizes a total of 53 relevant previous studies in the field of green finance. The findings of this research reveal 21 crucial dimensions of green finance in Bangladesh. The primary green finance products of Bangladeshi banks include green securities, green investments, climate finance, green insurance, green credit, green bonds and green infrastructure. The other factors include environmental performance and green economic growth, energy efficiency, green finance policy and environmental protection and the risk impact of bank policy formulation. The findings of this study will help policymakers to understand the green finance concept and its associated variables, which need to be considered when adopting and implementing green finance.
  • Consumer's behavior determinants after the electricity market liberalization: the Portuguese case

    Débora Maravilha; Susana Silva; Erika Laranjeira (AIMS Press, 2022-11-01)
    Electricity markets have been liberalized worldwide, but the success of country specific experiences varied widely. Consumers' behavior is among the key factors for successful liberalization experiences namely regarding the decision to switch operator. This decision has been shown to be influenced by a multiplicity of factors. The goal of this article is to explore the analysis of the drivers for switching operator in a liberalized electricity market. With that purpose, we focused on the residential Portuguese case using a questionnaire. The logit estimation showed that men are more likely to switch supplier than women and that larger families are less likely to do so probably, due to the perception of high information search costs. Other sociodemographic variables were not found to be statistically significant. Regarding specific determinants, our results showed that past experiences with a supplier, dissatisfaction with the current operator, and family and friends' experiences were the most important determining factor for the decision to switch operator. Hence, the price was not the most important determinant. We also explored if different income groups had differentiated responses regarding the main drivers but concluded that there was no evidence that the income group affected the importance given to the price or to the other determinants for the decision.
  • Scandal in the Portuguese banking sector – how a banking specific earnings management model predicted the fall of a family business group

    Tânia Menezes Montenegro; Filomena Antunes Brás (AIMS Press, 2022-09-01)
    We examined the external ability of the loan loss provision (LLP) model to detect extreme cases of earnings management (EM). According to the literature, the LLP model is the most useful in examining EM in banking institutions. We used it herein to explore the time-series behaviour of a fraudulent business group in the Portuguese banking sector between 1992 and 2013 − the Banco Espírito Santo Group (GBES). We conclude that GBES did not make discretionary use of LLP (i.e., DLLP) in the fraud period (2008 to 2013) when compared with the pre-fraud years (1992 to 2007). However, the level of LLP was significantly higher in the latter period; this was consistent with the procyclical nature of GBES's LLP. The results of a difference-in-difference approach did not reveal any significant differences between GBES's DLLP and non-fraudulent banks in the fraud period. Interestingly, the full bank sample (including GBES) provided evidence of the procyclical nature of LLP. Additional tests did not support the hypothesis of income smoothing via LLP, either amongst the bank sample as a whole or by GBES. The proven facts of the fraud indicated a significant undervaluation of loans and financial instruments and an underestimation of LLP. Thus, we expected to find negative DLLP in the fraud period and significantly different DLLP between the pre-fraud period and the fraud period itself. The DLLP of GBES should also have been significantly different from non-fraudulent banks in the fraud period. The LLP model proved ineffective in detecting GBES fraud and assessing the decisions of the bank's leader and his team, while the use of DLLP was effective. The evidence collected in our study will be of benefit to scholars and banking regulators.
  • Carbon and safe-haven flows

    Fernando Palao; Ángel Pardo (AIMS Press, 2022-12-01)
    This paper explores the role of European Union Allowances (EUAs) as a safe haven for a range of assets and analyses the effect of safe-haven flows on the European carbon futures market. In particular, we demonstrate that EUAs can be considered a refuge against fluctuations in corporate bonds, gold and volatility-related assets in periods of market turmoil. Furthermore, we have shown that extremely bearish and bullish movements in those assets for which the EUA acts as a safe haven induce excess volatility in carbon markets, higher carbon trading volume and larger than normal EUA bid-ask spreads. These findings support the idea that some traders, by considering carbon futures as a refuge asset, induce safe-haven flows into the carbon market. The presence of these flows provides additional insights into the financialisation of the European carbon futures market.
  • How do green bonds affect green technology innovation? Firm evidence from China

    Tao Lin; Mingyue Du; Siyu Ren (AIMS Press, 2022-12-01)
    As an emerging financial tool, green bonds can broaden the financing channels of enterprises and stimulate the green innovation of enterprises. Based on the A-share data of Chinese listed companies from 2012 to 2020, this paper analyzes the impact of green bonds on green technology innovation by using a method of Difference in Difference with Propensity Score Matching (PSM-DID). We found that green bonds can significantly improve enterprise green technology innovation. Its positive impact is attributed to increases in media attention and R&D capital investment and a reduction in financing constraints. Green bonds play a greater role in the green innovation of strong financial constraints enterprises, non-SOEs and large-scale enterprises. Our findings have important reference significance for the improvement of the resource allocation role of green bonds and achievement of sustainable growth.

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