Sustainable Financing for Sustainable Development: Understanding the Interrelations between Public Investment and Sovereign Debt

Arı, İbrahim; Кочкодан, Віктор

doi:10.3390/su10113901

Cited by 20 publications

(23 citation statements)

References 59 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, a lack of financial education and/or a culture of savings and investment, together with the normal risk aversion of the private sector, will hamper a rapid expansion in the contribution made by the private sector. Therefore, in seeking economically sustainable development, governments must take into account their own borrowing limits [44]. Furthermore, when financial markets are non-existent and/or unsophisticated, this further complicates the development of specific instruments.…”

Section: Discussionmentioning

confidence: 99%

The Financing Framework for Sustainable Development in Emerging Economies: The Case of Uruguay

et al. 2019

View full text Add to dashboard Cite

This paper explores the financing framework for sustainable development in Uruguay, an emerging economy, and examines whether available financing instruments contribute to achieving the sustainable development goals (SDGs) in which significant progress is still required in this country. Reports, policy documents and academic literature were reviewed to determine the types of sustainable development financing instruments available, and to analyse the challenges facing emerging economies in this regard. In addition, the financing programmes available from the public sector, non-governmental organisations (NGOs), the financial sector and multilateral credit agencies were examined. The results obtained show that the main financing sources for sustainable development are located within the public sector due to the absence of a developed financial market, and that the existing financial instruments do not address the SDGs where most attention is required. The latter circumstances make it challenging to achieve these SDGs in Uruguay. The study findings highlight the need for greater coordination among all parties to make efficient use of the scarce resources available to an emerging economy and thus enable it to meet its SDGs.

show abstract

Section: Discussionmentioning

confidence: 99%

The Financing Framework for Sustainable Development in Emerging Economies: The Case of Uruguay

et al. 2019

View full text Add to dashboard Cite

show abstract

“…Supporters were attentive in postponing GD and its payback without taking loss. This activity, to the detriment of much of the world, brought inflation and increased interest rates to financial markets (Gradoń 2003;Ari et al 2018;Ortiz-Rodríguez et al 2018).…”

Section: Government Deficitmentioning

confidence: 99%

Debt and Deficit Growth Rate Reporting for Post-Communist European Union Member States

2019

View full text Add to dashboard Cite

A focalized analysis and reporting on the problems of general government debt (GGD) and government deficit (GD) and their influencing factors on economic growth rate tell the story of positive, neutral, and negative economies. Research was conducted over a nineteen-year period between 2000 and 2018 on all eleven post-communist European Union Member States (MS). MSs are divided in to three regional blocks: (1) the Baltic countries, (2) Central and Eastern European countries, and (3) the Balkan countries. Reviewed literature examined different types of GGD and GD with denoted influence on each MS’s economy and government. GGD and GD increase as a result of State intervention by reacting to economic fluctuations needed in creating redistributive-related fiscal policy. A breakdown of the problems of fiscal policy is explained. Datasets were compiled and systematically analyzed using Eurostat indicators. European regulatory benchmarking was used for GGD and GD as a percentage of gross domestic product. Results were divided at the regional group level. Comparative tax systems based on total general government revenue as well as total tax and contribution rate were evaluated. Histo-geographical research was considered and a comparative examination of GGD, GD and growth rate illustrated. In terms of GGD, GD, and growth rate, the Baltic countries were best situated, while all other countries were generally stable—with the exception of Hungary, Croatia, and Slovenia. In all, negative or stagnant periods revealed a general positive trend throughout the study with the exception of the world financial crisis of 2008, in which a deteriorative impact on growth rate was evident in all MS—especially from 2009. In the latter years, MSs’ economic promise signals a high potential for renewed public finance and stability initiatives.

show abstract

“…In this context, economic transformation requires innovating inclusive and productive financing policies and ensuring that such new and alternative financing models promote green and clean consumption and production behaviors within individuals, firms, organizations, societies, and governments [13][14][15][16][17]. However, a high global debt concentration retards this inclusive and productive financing and has a significant, negative impact on sustainable development [6,18]. The global debt-to-GDP (gross domestic product) ratio rose dramatically from 269% in 2007 to 325% in 2016 [19,20].…”

Section: Sustainable Development and Global Debt Concentrationmentioning

confidence: 99%

“…In a macroeconomic perspective, national budget deficits and inadequate policy designs hinder public and private investments in renewable projects. These problems lead governments to borrow a considerable amount of money for sustainable development, although such excessive debt-based financing pushes them to unsustainable debt zones [6] and into unsustainable economic development. In a business-as-usual case, renewable energy projects were funded about 90% by debt-based financing from 2009 to 2017 [7].…”

Section: Introductionmentioning

confidence: 99%

Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments

Arı

Кочкодан

2019

Sustainability

Self Cite

View full text Add to dashboard Cite

Renewable energy investments require a substantial amount of capital to provide affordable and accessible energy for everyone in the world, and finding the required capital is one of the greatest challenges faced by governments and private entities. In a macroeconomic perspective, national budget deficits and inadequate policy designs hinder public and private investments in renewable projects. These problems lead governments to borrow a considerable amount of money for sustainable development, although such excessive debt-based financing pushes them to unsustainable economic development. This substantial amount of borrowing makes a negative contribution to the high global debt concentration, putting countries’ economic and social development at risk. In line with this, excessive debt-based financing causes an increase in wealth inequality, and when wealth inequality reaches a dramatic level, wars and many other social problems are triggered to correct the course of wealth inequality. In this regard, the motivation behind the study is to develop a set of policy guidelines for sustainable financing models as a solution for these intertwined problems, which are: 1) a financial gap in energy investments; 2) an excessive global debt concentration; and 3) a dramatic increase in wealth inequality. To this end, this study presents a quantitative and comparative proof of concept analysis of alternative financing models in a solar farm investment simulation to investigate the change in wealth inequality and social welfare by reducing debt-based financing and increasing public participation. There are many studies in the literature investigating the evolution of wealth inequality throughout history. However, there is a gap in the literature, and investigating the effects of various policy rules on the evolution of wealth inequality in a future time frame needs to be explored in order to discuss possible policy implications beforehand. In this respect, this paper contributes to the literature by developing simulation models for conventional and alternative financing systems. This enables investigating the changes in wealth inequality and social welfare as a result of various policy implications throughout the simulation time.

show abstract

Sustainable Financing for Sustainable Development: Understanding the Interrelations between Public Investment and Sovereign Debt

Cited by 20 publications

References 59 publications

The Financing Framework for Sustainable Development in Emerging Economies: The Case of Uruguay

The Financing Framework for Sustainable Development in Emerging Economies: The Case of Uruguay

Debt and Deficit Growth Rate Reporting for Post-Communist European Union Member States

Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments

Contact Info

Product

Resources

About