Green Investment by Firms : Finance or Climate Driven ?

There is limited research on the determinants of firms’ green investment strategies in developing regions despite their importance to meet global climate change targets. Understanding how changes in firm climate investment affect environmental perf...

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Main Authors:	Kalantzis, Fotios, Schweiger, Helena, Dominguez, Sofia
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2022
Subjects:	GREEN INVESTMENT CONSTRAINTS GREEN MANAGEMENT PRACTICES MITIGATION STRATEGIES ENVIRONMENTAL BENEFIT OF PRIVATE INVESTMENT GREEN INVESTMENT STRATEGIES NON-CAPITAL-INTENSIVE GREEN MEASURES CAPITAL-INTENSIVE GREEN MEASURES CLIMATE CHANGE ENVIRONMENT
Online Access:	http://documents.worldbank.org/curated/en/099725305102236711/IDU02bf347ba086050401008674010ed29aa4f84 http://hdl.handle.net/10986/37516

id	okr-10986-37516
recordtype	oai_dc
spelling	okr-10986-375162022-06-10T05:10:34Z Green Investment by Firms : Finance or Climate Driven ? Kalantzis, Fotios Schweiger, Helena Dominguez, Sofia GREEN INVESTMENT CONSTRAINTS GREEN MANAGEMENT PRACTICES MITIGATION STRATEGIES ENVIRONMENTAL BENEFIT OF PRIVATE INVESTMENT GREEN INVESTMENT STRATEGIES NON-CAPITAL-INTENSIVE GREEN MEASURES CAPITAL-INTENSIVE GREEN MEASURES CLIMATE CHANGE ENVIRONMENT There is limited research on the determinants of firms’ green investment strategies in developing regions despite their importance to meet global climate change targets. Understanding how changes in firm climate investment affect environmental performance is essential for policy makers and firms alike. Based on unique data from the joint European Bank for Reconstruction and Development–European Investment Bank–World Bank Group Enterprise Surveys, this paper empirically examines the role of access to finance and green management practices in firms’ green investment strategies. Based on logistic regressions, the econometric analysis finds a positive influence of green management practices on the number of mitigation measures implemented. By contrast, firms that are financially constrained are less likely to pursue many mitigation measures. Finally, the results do not show significant differences in the impact of financial constraints on the type of green investment, but indicate that better green management practices lead to a higher likelihood of investing in both capital- and non-capital-intensive green measures. 2022-06-09T20:52:12Z 2022-06-09T20:52:12Z 2022-06 Working Paper http://documents.worldbank.org/curated/en/099725305102236711/IDU02bf347ba086050401008674010ed29aa4f84 http://hdl.handle.net/10986/37516 English Policy Research Working Papers;10064 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Middle East and North Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	GREEN INVESTMENT CONSTRAINTS GREEN MANAGEMENT PRACTICES MITIGATION STRATEGIES ENVIRONMENTAL BENEFIT OF PRIVATE INVESTMENT GREEN INVESTMENT STRATEGIES NON-CAPITAL-INTENSIVE GREEN MEASURES CAPITAL-INTENSIVE GREEN MEASURES CLIMATE CHANGE ENVIRONMENT
spellingShingle	GREEN INVESTMENT CONSTRAINTS GREEN MANAGEMENT PRACTICES MITIGATION STRATEGIES ENVIRONMENTAL BENEFIT OF PRIVATE INVESTMENT GREEN INVESTMENT STRATEGIES NON-CAPITAL-INTENSIVE GREEN MEASURES CAPITAL-INTENSIVE GREEN MEASURES CLIMATE CHANGE ENVIRONMENT Kalantzis, Fotios Schweiger, Helena Dominguez, Sofia Green Investment by Firms : Finance or Climate Driven ?
geographic_facet	Middle East and North Africa
relation	Policy Research Working Papers;10064
description	There is limited research on the determinants of firms’ green investment strategies in developing regions despite their importance to meet global climate change targets. Understanding how changes in firm climate investment affect environmental performance is essential for policy makers and firms alike. Based on unique data from the joint European Bank for Reconstruction and Development–European Investment Bank–World Bank Group Enterprise Surveys, this paper empirically examines the role of access to finance and green management practices in firms’ green investment strategies. Based on logistic regressions, the econometric analysis finds a positive influence of green management practices on the number of mitigation measures implemented. By contrast, firms that are financially constrained are less likely to pursue many mitigation measures. Finally, the results do not show significant differences in the impact of financial constraints on the type of green investment, but indicate that better green management practices lead to a higher likelihood of investing in both capital- and non-capital-intensive green measures.
format	Working Paper
author	Kalantzis, Fotios Schweiger, Helena Dominguez, Sofia
author_facet	Kalantzis, Fotios Schweiger, Helena Dominguez, Sofia
author_sort	Kalantzis, Fotios
title	Green Investment by Firms : Finance or Climate Driven ?
title_short	Green Investment by Firms : Finance or Climate Driven ?
title_full	Green Investment by Firms : Finance or Climate Driven ?
title_fullStr	Green Investment by Firms : Finance or Climate Driven ?
title_full_unstemmed	Green Investment by Firms : Finance or Climate Driven ?
title_sort	green investment by firms : finance or climate driven ?
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/099725305102236711/IDU02bf347ba086050401008674010ed29aa4f84 http://hdl.handle.net/10986/37516
_version_	1764487377444667392

Green Investment by Firms : Finance or Climate Driven ?

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