Financial Eco-Innovation as a Mechanism for Fostering the Development of Sustainable Infrastructure Systems

Abstract

This paper aims to propose a financial framework based on mezzanine-type debt for financing Sustainable Infrastructure Systems (SIS). In our analysis, an exploratory-type methodology based on a post-positivist approach for describing the financial eco-innovation in the sustainable infrastructure context is used and consequently, the essential framework’s theory is developed, as well as the characteristics and schemes for its functioning. Moreover, the theoretical foundations of financial eco-innovations are analyzed. It was concluded that researchers could benefit from this framework by acquiring a better knowledge of how a mezzanine-debt type could work together sustainability criteria. This paper is expected to contribute to expanding the existing knowledge and expanding funding knowledge frontiers for SIS, as well as contributes to providing a foundation for new research topics. The originality of the proposed framework is intended to establish new ways in order to close the gap between the development of SIS and financing sources using the incorporation of sustainability criteria in the financing process. Thus, the importance of this work is based on the fact that it can be used as an academic support for producing practical solutions.

Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment

“…Third, compared with multinationals from developed countries, Multilatinas are smaller in size and have less cutting‐edge technology and less‐sophisticated resources (Duque‐Grisales et al, 2020; González‐Ruiz, Botero‐Botero, & Duque‐Grisales, 2018). Multilatinas' managers do not believe they can engage in GI because they associate innovation with ‘obtaining patents’, a process considered as very expensive and risky for the interests of the company (Scarpellini, Portillo‐Tarragona, & Marin‐Vinuesa, 2019).…”

Sustainable Financial Products in the Latin America Banking Industry: Current Status and Insights

“…Although disparities regarding concepts of what can be classified as sustainable finance, diverse types of barriers for the development of financial innovations have been identified, as stated by [19]. These authors also examine the concept of financial eco-innovation and recompile several existing barriers to its expansion and the suggested instruments to undertake them.…”

“…In the last decades, for the banking industry, both responsibility and climate concerns have been considered as the main drivers for developing new business models, mainly focused on sustainable banking [17][18][19][20]. Given its pivotal role as the leading financial intermediary and cornerstone in the granting of credits for the development of projects, business growth and the weighting of risks embedded therein, the effects that the incorporation of ESG criteria could have on the design of its products and financial services are extensive in the banking industry [21][22][23][24].…”

Trade Credit Financing and Sustainable Growth of Firms: Empirical Evidence from China

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