COST OF CAPITAL CALCULATION FEATURES IN THE CONCEPT OF GREEN FINANCE AND GREEN INVESTMENTS
DOI:
https://doi.org/10.18413/2687-0932-2020-47-2-338-353Keywords:
green finance, social finance, sustainable development finance, green bonds, green investmentsAbstract
The analysis and classification of green finance and related concepts were carried out. Сurrent problems and constraints of green economy development, as well as the main mechanisms of financing green investment projects were considered as well. The object of this research is the cost of capital for green investment projects. The work shows the relationships between the spheres of basic categories of finance of the green economy, as well as the classification of terminology clusters contained in the spheres of these categories. In addition, we analyzed main trends and key problems impeding the development of green energy in the world and in the Russian Federation. The second and the main part of this research is devoted to the issues of determining the premium (discount) for the investor in green financial instruments of the stock market (shares and bonds). Stock and bond market indicators have shown that the market is quite efficient, and investors are primarily driven by classic risk and yield motivations rather than the green corporation or green financial instrument flag. In spite all the popularity of the green investment concept, we have not found enough convincing and unambiguous evidence that green investors pay an additional premium or receive a discount when buying a green stock or green bond. At the same time, we faced with a few contradictions and difficulties (basically connected with data for the research) when analyzing the cost of green capital, that’s why this topic remains relevant and requires further development.
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