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Financing the Green Transformation — Market Failures, Government Failures and the Role of the State

  • Ulrich Volz
  • Judith Böhnke
  • Vanessa Eidt
  • Laura Knierim
  • Katharina Richert
  • Greta-Maria Roeber

Abstract

Green investments are obstructed by a combination of both market and government failures. These failures prevent the allocation of capital into green investments to a socially optimal degree. However, although government failures cannot be ruled out per se, most experts would agree that the public sector ought to play a vital role in catalysing and leveraging green investments. This chapter introduces these failures and establishes the rationale for public intervention. Subsequently it defines a set of criteria that should guide public intervention and discusses different instruments to overcome the failures.

Keywords

Financial Institution Market Failure International Energy Agency Green Investment International Energy Agency 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Ulrich Volz, Judith Böhnke, Vanessa Eidt, Laura Knierim, Katharina Richert and Greta-Maria Roeber 2015

Authors and Affiliations

  • Ulrich Volz
    • 1
    • 2
  • Judith Böhnke
    • 3
  • Vanessa Eidt
    • 3
  • Laura Knierim
    • 3
  • Katharina Richert
    • 4
  • Greta-Maria Roeber
    • 5
  1. 1.SOASUniversity of LondonUK
  2. 2.German Development InstituteGermany
  3. 3.KfW Development BankGermany
  4. 4.Department of EconomicsUniversity of HeidelbergGermany
  5. 5.Financial Systems Development Competence CentreGIZ German Technical CooperationGermany

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