Social Funding of Green Financing: An Application of Distributed Ledger Technologies
Yoshino, Naoyuki; Schloesser, Tim; Taghizadeh-Hesary, Farhad | November 2018
Abstract
To achieve the sustainable development goals (SDGs) as well as the Paris Agreement major investments in renewable energy (RE) production are necessary worldwide. In particular, decentralized, small-scale projects offer copious potential to create energy access as well as to contribute to an affordable, reliable and sustainable energy supply system. However, in developing countries such projects often face issues in finding funding. Direct private investment tools like the community-based hometown investment trust (HIT) fund address this issue and offer a way of financing for those projects. Technical developments in the sphere of distributed ledger technologies (DLTs) provide the opportunity to increase the fund’s transparency and thus to improve its functioning. On that basis, this paper contributes to the literature in two ways: First, it delineates a concrete application of DLTs in the field of green financing, which offers the potential to increase social welfare. Second, the decision problem of investors is modeled, which illustrates through which channel the use of DLTs impacts the investors’ behavior.
Citation
Yoshino, Naoyuki; Schloesser, Tim; Taghizadeh-Hesary, Farhad. 2018. Social Funding of Green Financing: An Application of Distributed Ledger Technologies. © Asian Development Bank Institute. http://hdl.handle.net/11540/9359.Keywords
Alternative energy
Alternative energy development
Photovoltaic Energy
Geothermal Energy
Financial & Private Sector Development
Private Sector Investments
Private Sector Participation
Private Sector Projects
Financial Stability
Financial Management System
Financial Restructuring
Capital Market Development
Market Development
Alternative energy program
Alternative energy technology
Energy Demand
Energy planning
Energy Resources
Energy Resources Development
Primary Energy Production
Primary Energy Supply
Taxation
Public Accounting
National Budget
Municipal Bonds
Loc
Private enterprises
Private ownership
Government
Infrastructure projects
Development projects
Financial loss
International Financial Market
Multilateral Financial Institutions
Green technology
Energy conversion
Electric power consumption
Cost effectiveness
Inventions
Sun
Solar heating
Solar energy
Renewable energy source
Power resource
Natural resource
Energy harvesting
Energy development
Energy facility
Power supply
Solar activity
Solar constant
Earth
Weather
Renewable energy resource
Energy security
Energy tax credit
Energy assistance
Solar energy policy
Conservation of natural resources
Local finance
Business recessions
Multilateral development banks
Regulatory reform
Capital
Exports
Economic development projects
Investment Requirements
Banks
International banks and banking
Capital movements
Central banks and banking
Bills of exchange
Swaps
Banks and banking
Financial crisis
Credit control
Credit allocation
Capital market
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