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Social Funding of Green Financing: An Application of Distributed Ledger Technologies

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  • Naoyuki Yoshino
  • Tim Schloesser
  • Farhad Hesary

Abstract

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. 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.

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  • Naoyuki Yoshino & Tim Schloesser & Farhad Hesary, 2018. "Social Funding of Green Financing: An Application of Distributed Ledger Technologies," Working Papers id:12946, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12946
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    1. Yu, Huaying & Wei, Wei & Li, Jinhe & Li, Ying, 2022. "The impact of green digital finance on energy resources and climate change mitigation in carbon neutrality: Case of 60 economies," Resources Policy, Elsevier, vol. 79(C).
    2. Wang, Shuguang & Sun, Luang & Iqbal, Sajid, 2022. "Green financing role on renewable energy dependence and energy transition in E7 economies," Renewable Energy, Elsevier, vol. 200(C), pages 1561-1572.

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