Defining and Measuring Green Investments

Inderst, Georg; Kaminker, Christopher; Stewart, Fiona

doi:10.2139/ssrn.2742085

Cited by 28 publications

(21 citation statements)

References 23 publications

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“…Della Croce et al (2011) noted that investors improve their reputation by showing concern for the environment by investing in sustainable construction projects. Inderst et al (2012) reported that one of the motivators for financing sustainable construction by an investor or company is to improve its reputation and market itself.…”

Section: Literature Reviewmentioning

confidence: 99%

Key drivers for green building project financing in Ghana

Agyekum

Goodier

Oppon

2021

ECAM

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PurposeThe majority of the literature on green buildings in Ghana focuses on environmental benefits, innovative designs, construction technologies and project management techniques. However, little is known about how such facilities are financed. This issue creates potential knowledge gaps, one of which this study aims to address. This study examines the key drivers for green building project financing in Ghana.Design/methodology/approachThe study uses an explanatory sequential design with an initial quantitative instrument phase, followed by a qualitative data collection phase. An extensive critical comparative review of the literature resulted in the identification of eight potential drivers. One hundred and twenty-seven questionnaire responses based upon these drivers from the Ghanaian construction industry were received. Data were coded with SPSS v22, analysed descriptively (mean, standard deviation and standard error) and via inferential analysis (One Way ANOVA and One-Sample t-Test). These data were then validated through semi-structured interviews with ten industry professionals within the Ghana Green Building Council. Data obtained from the semi-structured validation interviews were analysed through the side-by-side comparison of the qualitative data with the quantitative data.FindingsThough all eight drivers are important, the five key drivers for the Ghanian construction industry were identified as, in order of importance, “high return on investment”, “emerging business opportunity”, “ethical investment”, “conservation of resources” and “mandatory regulations, standards, and policies”. The interviewees agreed to and confirmed the importance of these identified drivers for green building project financing from validating the survey's key findings.Research limitations/implicationsKey limitations of this study are the restrictions regarding the geographical location of the collected data (i.e. Kumasi and Accra); timing of the study and sample size (i.e. the COVID-19 pandemic making it difficult to obtain adequate data).Practical implicationsThough this study was conducted in Ghana, its implications could be useful to researchers, policymakers, stakeholders and practitioners in wider sub-Saharan Africa. For instance, financial institutions can invest in green buildings to expand their green construction and mortgage finance products to build higher value and lower risk portfolios. The findings from this study can provide investors with the enhanced certainty needed to help guide and inform their investment decisions, i.e. what to invest in, and when, by how much and how a scheme being “green” may influence their rate of return. Also, for building developers, it will give them a clearer understanding of the business case for green buildings and how to differentiate themselves in the market to grow their businesses.Originality/valueThis study's findings provide insights into an under-investigated topic in Ghana and offer new and additional information and insights to the current state-of-the-art on the factors that drive green building project financing.

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Section: Literature Reviewmentioning

confidence: 99%

Key drivers for green building project financing in Ghana

Agyekum

Goodier

Oppon

2021

ECAM

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“…This paper contributed to the literature through different aspects: First, it is the first academic study to discover the relationship between energy efficiency and green bond in OECD countries which are pioneer in issuing green bonds (Inderst et al , 2012) and have been damaged by the negative consequences of the pandemic. Further, since our empirical part provides estimation results based on quarterly data covering the year of 2019 and 2020, it may bring some policy implications to enhance energy efficiency financing in and post-COVID period.…”

Section: Introductionmentioning

confidence: 99%

Energy efficiency financing and the role of green bond: policies for post-Covid period

Rasoulinezhad

2021

CFRI

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PurposeOne of the major negative effects of the Coronavirus outbreak worldwide has been reduced investment in green energy projects and energy efficiency. The main purpose of this paper is to study the role of green bond proposed by the World Bank in 2008, as a reliable instrument to enhance the capital flow in energy efficiency financing and to develop green energy resources during and post the current challenging global time.Design/methodology/approachWe model energy efficiency for 37 members of OECD through a panel data framework and quarterly data over 2007Q1–2020Q4.FindingsThe major results reveal the positive impacts of issued green bonds and regulatory quality index on energy efficiency, while any increase in inflation rate and urbanization decelerates the progress of raising energy efficiency.Practical implicationsAs highlighted concluding remarks and policy implications, it can be expressed that the tool of green bond is a potential policy to drive-up energy efficiency financing and enhancing environmental quality during and post-COVID period. It is recommended to follow green bond policy with an efficient regulation framework and urbanization saving energy planning.Originality/valueTo the best of the authors' knowledge, although a few scholars have investigated the impacts of COVID-19 on green financing or examined the energy efficiency financing, the matter of modeling energy efficiency–green bond relationship has not been addressed by any academic study. The contributions of this paper to the existing literature are: (1) it is the first academic study to discover the relationship between energy efficiency and green bond in OECD countries, (2) since our empirical part provides estimation results based on quarterly data covering the year of 2019 and 2020, it may offer some new policy implications to enhance energy efficiency financing in and post-COVID period, (3) furthermore, we consider energy efficiency indicator (mix of industrial, residential, services and transport energy efficiency) as the dependent variable instead of using the simple energy intensity variable as a proxy for energy efficiency.

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“…The liquidity concerns may be pertinent in green bonds market, since the demand for green bonds is likely to surpass the supply due to investors' need to address the ESG (Environmental, Social, and Governance) and SRI (Social Responsible Investment) mandates. In addition, green bonds show low correlation with other fixed income securities and provide diversification benefits to investors (Inderst et al 2012).…”

Section: Introductionmentioning

confidence: 99%

Liquidity Risk and Yield Spreads of Green Bonds

et al. 2018

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This study analyses how liquidity risk affects bonds' yield spreads after controlling for credit risk, bond-specific characteristics and macroeconomic variables. Using two liquidity estimates, LOT liquidity and the bid-ask spread, we find that, in particular, the LOT liquidity measure has explanatory power for the yield spread of green bonds. Overall, however, the impact of LOT decreases over time, implying that, nowadays liquidity risk is negligible for green bonds.

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Defining and Measuring Green Investments

Cited by 28 publications

References 23 publications

Key drivers for green building project financing in Ghana

Key drivers for green building project financing in Ghana

Energy efficiency financing and the role of green bond: policies for post-Covid period

Liquidity Risk and Yield Spreads of Green Bonds

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