IDEAS home Printed from https://ideas.repec.org/p/idn/wpaper/wp052022.html
   My bibliography  Save this paper

Towards Green Economy Transformation Through Islamic Green Financing: Managing Risk And Fostering Sustainable Growth For The Real And Financial Sectors

Author

Listed:
  • Ferry Syarifuddin

    (Bank Indonesia)

Abstract

This study investigates the preferences of various Islamic Financing Instruments to promote green economy ransformation adopting ANPBOCR (Benefit, Opportunity, Cost, Risk) approach, with two groups of experts as the respondents, namely academicians and practitioners. The first finding shows, that ‘Benefit’ aspect is the most preferred, urgency to conduct green economy transformation. Among criteria in the benefit aspect, natural resource damage prevention and reduction are the primary issues which is in line with maqasid al-Syari’ah (objectives of Islamic law). Using standard formula, the second finding shows that Islamic Asset Management is the most preferred Islamic financial instrument to perform green economy transition. Meanwhile, the third finding shows that in the short-term, Islamic Asset Management is more preferred financial instrument. Whereas, Islamic corporate and investment banking is the most preferred and crucial for long-term when transforming economy to green.

Suggested Citation

  • Ferry Syarifuddin, 2022. "Towards Green Economy Transformation Through Islamic Green Financing: Managing Risk And Fostering Sustainable Growth For The Real And Financial Sectors," Working Papers WP/05/2022, Bank Indonesia.
    • Handle: RePEc:idn:wpaper:wp052022
    as

    Download full text from publisher

    File URL: http://publication-bi.org/repec/idn/wpaper/WP052022.pdf
    File Function: First version, 2022
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Geddes, Anna & Schmidt, Tobias S., 2020. "Integrating finance into the multi-level perspective: Technology niche-finance regime interactions and financial policy interventions," Research Policy, Elsevier, vol. 49(6).
    2. Fabio De Felice & Antonella Petrillo & Orrin Cooper, 2013. "An integrated conceptual model to promote green policies," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 7(4), pages 333-355.
    3. Isaac Akomea-Frimpong & David Adeabah & Deborah Ofosu & Emmanuel Junior Tenakwah, 2022. "A review of studies on green finance of banks, research gaps and future directions," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 12(4), pages 1241-1264, October.
    4. Thomas L. Saaty & Luis G. Vargas, 2013. "The Analytic Network Process," International Series in Operations Research & Management Science, in: Decision Making with the Analytic Network Process, edition 2, chapter 0, pages 1-40, Springer.
    5. Thomas L. Saaty & Luis G. Vargas, 2013. "Decision Making with the Analytic Network Process," International Series in Operations Research and Management Science, Springer, edition 2, number 978-1-4614-7279-7, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rachele Corticelli & Margherita Pazzini & Cecilia Mazzoli & Claudio Lantieri & Annarita Ferrante & Valeria Vignali, 2022. "Urban Regeneration and Soft Mobility: The Case Study of the Rimini Canal Port in Italy," Sustainability, MDPI, vol. 14(21), pages 1-27, November.
    2. David Staš & Radim Lenort & Pavel Wicher & David Holman, 2015. "Green Transport Balanced Scorecard Model with Analytic Network Process Support," Sustainability, MDPI, vol. 7(11), pages 1-19, November.
    3. Clara Moreira Senne & Josiane Palma Lima & Fábio Favaretto, 2021. "An Index for the Sustainability of Integrated Urban Transport and Logistics: The Case Study of São Paulo," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    4. Mohammed Ifkirne & Houssam El Bouhi & Siham Acharki & Quoc Bao Pham & Abdelouahed Farah & Nguyen Thi Thuy Linh, 2022. "Multi-Criteria GIS-Based Analysis for Mapping Suitable Sites for Onshore Wind Farms in Southeast France," Land, MDPI, vol. 11(10), pages 1-26, October.
    5. Enrique Mu & Howard Stern, 2018. "A Contingent/Assimilation Framework for Public Interorganizational Systems Decisions: Should the City of Pittsburgh and Allegheny County Consolidate Information Technology Services?," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(06), pages 1611-1658, November.
    6. Toly Chen, 2021. "A diversified AHP-tree approach for multiple-criteria supplier selection," Computational Management Science, Springer, vol. 18(4), pages 431-453, October.
    7. Hocine, Amine & Kouaissah, Noureddine, 2020. "XOR analytic hierarchy process and its application in the renewable energy sector," Omega, Elsevier, vol. 97(C).
    8. Abrahamsen, Eirik Bjorheim & Milazzo, Maria Francesca & Selvik, Jon T. & Asche, Frank & Abrahamsen, HÃ¥kon Bjorheim, 2020. "Prioritising investments in safety measures in the chemical industry by using the Analytic Hierarchy Process," Reliability Engineering and System Safety, Elsevier, vol. 198(C).
    9. Paweł Ziemba, 2019. "Inter-Criteria Dependencies-Based Decision Support in the Sustainable wind Energy Management," Energies, MDPI, vol. 12(4), pages 1-29, February.
    10. Ya Wu & Chenyang Shuai & Liu Wu & Liyin Shen & Jianzhong Yan & Liudan Jiao & Shiju Liao, 2020. "A new experience mining approach for improving low carbon city development," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 922-934, July.
    11. Mokarram, Marzieh & Mirsoleimani, Abbas, 2018. "Using Fuzzy-AHP and order weight average (OWA) methods for land suitability determination for citrus cultivation in ArcGIS (Case study: Fars province, Iran)," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 508(C), pages 506-518.
    12. Guangying Jin, 2022. "Designer Selection for Complex Engineering System Design Projects Considering the Disciplines Demanded," Sustainability, MDPI, vol. 14(23), pages 1-25, December.
    13. Qingfu Li & Chuangshi Fan, 2022. "Evaluation of Hydraulic-Tunnel-Lining Durability Based on ANP and Cloud-Model-Improved Matter–Element Theory," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    14. Alok K. Pandey & R. Krishankumar & Dragan Pamucar & Fausto Cavallaro & Abbas Mardani & Samarjit Kar & K. S. Ravichandran, 2021. "A Bibliometric Review on Decision Approaches for Clean Energy Systems under Uncertainty," Energies, MDPI, vol. 14(20), pages 1-27, October.
    15. Joram Schito & Joshu Jullier & Martin Raubal, 2019. "A framework for integrating stakeholder preferences when deciding on power transmission line corridors," EURO Journal on Decision Processes, Springer;EURO - The Association of European Operational Research Societies, vol. 7(3), pages 159-195, November.
    16. Melani, Arthur Henrique Andrade & Murad, Carlos Alberto & Caminada Netto, Adherbal & Souza, Gilberto Francisco Martha de & Nabeta, Silvio Ikuyo, 2018. "Criticality-based maintenance of a coal-fired power plant," Energy, Elsevier, vol. 147(C), pages 767-781.
    17. Mansour Alyahya & Meqbel Aliedan & Gomaa Agag & Ziad H. Abdelmoety, 2023. "Understanding the Relationship between Big Data Analytics Capabilities and Sustainable Performance: The Role of Strategic Agility and Firm Creativity," Sustainability, MDPI, vol. 15(9), pages 1-17, May.
    18. Yasmin, Mariam & Tatoglu, Ekrem & Kilic, Huseyin Selcuk & Zaim, Selim & Delen, Dursun, 2020. "Big data analytics capabilities and firm performance: An integrated MCDM approach," Journal of Business Research, Elsevier, vol. 114(C), pages 1-15.
    19. Abhishek Srivastava & Deepti Mehrotra & P. K. Kapur & Anu G. Aggarwal, 2020. "Analytical evaluation of agile success factors influencing quality in software industry," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(2), pages 247-257, July.
    20. Diogo Rodrigues & Radu Godina & Pedro Espadinha da Cruz, 2021. "Key Performance Indicators Selection through an Analytic Network Process Model for Tooling and Die Industry," Sustainability, MDPI, vol. 13(24), pages 1-20, December.

    More about this item

    Keywords

    Green Economy Transformation; Islamic Green Financing; ANP; BOCR;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:wpaper:wp052022. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.