Meenakshi Rishi

This essay examines public support and individual preferences for green finance through the lens of Pope Francis’s Laudato Si’ and his exhortation to respond to the cry of the earth. Green finance focuses on fostering environmental sustainability and is closely aligned with the themes of caring for our common home and responding to the cry of the earth. However, green finance needs funding to address the exigencies of climate change and is currently facing a climate funding gap. One innovative strategy to close this gap posits the robust use of Environmental Impact Assessment (EIA) processes, which can estimate the environmental effects and costs/benefits of proposed projects. These assessments can better inform policy decisions and project evaluations, as well as guide resource and budgetary allocations. Notably, these assessments are not limited to environmental initiatives and extend to any project or business venture with potential environmental implications. EIA decision-making necessitates understanding individual preferences, and specifically the value placed by the public on environmental goods and services. In this context, willingness-to-pay (WTP) methodologies offer a novel valuation technique for assessing the monetary value individuals place on goods and services, such as clean air and water, which lack market prices. Incorporating WTP into cost-benefit analyses can help policymakers evaluate the feasibility of environmental policies and interventions. These WTP estimates can provide guidelines for budgetary allocations for green financing and can also be useful in assessing the optimality of existing environmental regulations and policies. The purpose of this essay is to demonstrate the potential of WTP as a tool for addressing the climate funding gap. To this end, several studies that utilized this methodology were surveyed. Additionally, this essay explores how WTP methodology aligns with the principles of Laudato Si’, translating ethical advocacy into actionable, multi-stakeholder approaches for sustainable development.

This study examined whether people who reside in different regions of South Korea exhibit different WTP for the mitigation of PM2.5 emissions from coal-fired power plants by restricting their operation during the winter and spring when air pollution becomes severe. The eastern portions of the country are relatively insulated from the harmful effects of PM2.5 emissions due to northwest winds which cause air pollutants generated from coal-fired power plants to be carried out to the East Sea (Sea of Japan). Consequently, our sample group was divided into central, western, eastern, and southern regions, and a contingent valuation method, combined with a double-bounded dichotomous choice, was used to derive people’s WTP for the mitigation of PM2.5 emissions. Our estimation results indicated that respondents who live in eastern regions showed a significantly lower WTP (about KRW 1280/month) than the mean WTP of other regions (above KRW 1337/month). Thus, we suggest that the current Seasonal Management System of PM2.5 emissions should be modified to consider regional differences. Statistical results from this study reinforce our suggestions—almost 78 percent of survey respondents support a revision of the current SMS policy and are in favor of a revised SMS policy—one that exempts eastern regions from a nationwide shutdown of coal-fired generation from December to March. Exempting coal-fired power plants in eastern regions from the Seasonal Management System might result in significant fiscal savings without a corresponding increase in nationwide PM2.5 concentrations.

This study examined if people who reside in different regions of South Korea exhibit different WTP for the mitigation of PM2.5 emissions from coal power plants by restricting the operation of such plants during the winter and spring when air pollution becomes severe. A contingent valuation method combined with a double bounded dichotomous choice was used to derive people’s WTP for the mitigation of PM2.5 emissions. Sample group was divided into central, western, eastern, and southern regions. It is known that the eastern region is affected by northwesterly winds in the winter and spring seasons, so air pollutants in the eastern areas fly to the eastern sea. According to the estimation results, respondents who live in eastern regions showed significantly lower WTP than the average WTP. We suggest that the mitigation policy on PM2.5 emissions should consider regional differences in the contributions of coal power plants to PM2.5 emissions.

The Korean government is committed to advance the country’s energy transition to greener energy by increasing the share of renewable electricity to 20 percent by 2030 and to 30–35 percent by 2040. Achieving these goals will necessitate flexibility in energy markets as well as innovative business models and technological solutions. Peer-to-peer (P2P) electricity trading platforms (ETPs) are rapidly gaining traction, as they enable the integration of distributed energy sources into power systems. This study explores whether South Koreans are willing to participate in a hypothetical P2P ETP, which allows prosumers (who both consume and produce electricity) to trade electricity surpluses with their neighbours or with KEPCO (Korea Electric Power Corporation). We employ a choice experiment (CE) to examine respondent heterogeneous preferences and their willingness to pay (WTP) for a hypothetical P2P ETP in South Korea. Our findings indicate that two-thirds of total respondents in our CE are in favour of a P2P ETP if available. Cost savings and security play an essential role in respondent preferences for a P2P ETP business model. Respondents also prefer to trade renewable electricity with KEPCO rather than with other individuals. Per our statistical estimations, respondent WTP for a P2P ETP was estimated at USD 55.68/per month. Our analysis strongly recommends increasing consumer awareness of P2P ETPs to spur adoption. Energy trading platforms that are anchored in secure block chain technology can generate cost savings as well as support the country’s policy tilt toward green energy.

The Covid-19 pandemic has shocked the global energy system. It has resulted in tremendous uncertainty and diminished the recent advances to increase access

Sustainable investing allocates investments based on environmental, social and governance factors (ESG). The societal value of sustainable investment is becoming progressively relevant as investors are increasingly recognizing the importance of investing in companies that seek to combat climate change, environmental destruction, while promoting corporate responsibility. Environmental policy and sustainable growth initiatives at a country-level are also being influenced by the UN’s Sustainable Development Goals (SDGs). Situated within the current trend of declining foreign direct investment flows (FDI), our study examines the role of ESG factors in attracting FDI and enabling progress toward SDGs. We econometrically examine the linkages between ESG and FDI inflows for a sample of 161 counties. We also focus on low- and middle-income emerging economies and low- and middle-income commodity exporters as these countries face unique challenges of mobilizing financing to achieve SDGs and generating sustainable economic growth. Results suggest that FDI inflows to the full sample of countries are positively attracted by good governance in a destination country. We observe that good scores on HDI deters FDI, that higher FDI flows are associated with higher levels of carbon emissions in the case of emerging markets. Sustainability reporting attracts FDI to commodity exporting countries. The study provides possibilities for future research in a post-pandemic future.