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Incentives For Financing Sustainable Development

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  • MOLDOVAN (GAVRIL) IOANA ANDRADA

    (THE BUCHAREST UNIVERSITY OF ECONOMIC STUDIES)

Abstract

Green investments that comply with the principles of sustainable development represent a challenge for investors and funders, given the fact that their costs are higher than those of investments in polluting traditional technologies. However, there are several incetives for the shift from traditional investments to green investments. This transition is urgently needed because otherwise the negative effects of pollution will endanger food security and welfare of a number of increasingly large communities, particularly in emerging countries and the Third World. Governments play an important role in stimulating green investment and they can promote them by tax measures, public-private partnerships or stimulating technological innovation. Beyond government interventions that can make them attractive for private investors and financial companies, green investments have the advantage of lower full costs on the long run, compared to traditional investment in intensive fossil fuels technologies. Although on the short run these investments may have high costs, over the long run, they favor all types of economic agents, including financial companies that could better assess and manage their risks, given the fact that development trends would fulfill the principles of sustainability on the long run.

Suggested Citation

  • Moldovan (Gavril) Ioana Andrada, 2015. "Incentives For Financing Sustainable Development," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 312-317, April.
    • Handle: RePEc:cbu:jrnlec:y:2015:v:2:p:312-317
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    References listed on IDEAS

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    1. Tamazian, Artur & Bhaskara Rao, B., 2010. "Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies," Energy Economics, Elsevier, vol. 32(1), pages 137-145, January.
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