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Ecological finance theory: New foundations

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  • Lagoarde-Segot, Thomas
  • Martínez, Enrique A.

Abstract

This paper puts forth Ecological Finance Theory as a new vision for 21st century financial economics. We first motivate this project by referring to the current global bio-geophysical context. We then introduce new meta-theoretical hypotheses, which we compare with those of the previous paradigm. We then borrow concepts of resilience, diversity, self-thinning, self-regulated mitosis, and ecological transparency from biology and introduce them in the field of financial economics. Finally, we analyze the impact of an increase in ecological transparency on resilience and diversity by developing a new stock-flow consistent model with mitotic control. The present paper is hence an invitation to reorient financial theory in line with the Anthropocene context.

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  • Lagoarde-Segot, Thomas & Martínez, Enrique A., 2021. "Ecological finance theory: New foundations," International Review of Financial Analysis, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finana:v:75:y:2021:i:c:s1057521921000843
    DOI: 10.1016/j.irfa.2021.101741
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    Cited by:

    1. Ben, Fang & Li, Zhe & Sun, Jing & Wang, Hongmei & Zhao, Xin, 2024. "Ecological product value accounting and analyst behavior," International Review of Financial Analysis, Elsevier, vol. 94(C).
    2. Farhad Taghizadeh-Hesary & Naoyuki Yoshino & Han Phoumin, 2021. "Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World," Sustainability, MDPI, vol. 13(10), pages 1-24, May.
    3. Terrance Quinn, 2023. "An Emergent Transdisciplinary Methodology for Effective Collaboration in Ecological Economics," Sustainability, MDPI, vol. 15(9), pages 1-22, May.
    4. María Mar Miralles-Quirós & José Luis Miralles-Quirós, 2022. "Decarbonization and the Benefits of Tackling Climate Change," IJERPH, MDPI, vol. 19(13), pages 1-4, June.
    5. Lagoarde-Ségot, Thomas & Revelli, Christophe, 2023. "Ecological money and finance. Introducing ecological risk-free assets," International Review of Financial Analysis, Elsevier, vol. 90(C).
    6. D'Amato, Valeria & Di Lorenzo, Emilia & Piscopo, Gabriella & Sibillo, Marilena & Trotta, Annarita, 2024. "Insurance business and social sustainability: A proposal," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
    7. Carè, R. & Weber, O., 2023. "How much finance is in climate finance? A bibliometric review, critiques, and future research directions," Research in International Business and Finance, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    Ecological finance theory; Finance; Sustainability;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General

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