A Theory of Social Finance

This academic paper develops a theoretical framework for social finance, characterizing the optimal strategies for social financial institutions (SFIs). It suggests that quasi-foundations can be efficient vehicles for social finance, especially when social screening costs are relatively low. The paper explores the underlying economic principles and mechanisms that govern the allocation of financial resources towards social and environmental objectives, contributing to the broader understanding of social preferences and motivations in finance.

Sustainable Finance

This paper discusses sustainable finance, emphasizing the importance of productive investments for long-term growth. It examines sustainability in the financial market through various lenses, including environmental, social, and governance (ESG) factors. The article specifically highlights the role of green bonds in promoting sustainable investment, noting India’s initiatives in this area. It delves into the three pillars of sustainable development—social development, environmental protection, and economic development—and stresses how proper fund allocation can address global challenges like climate change and contribute to a green economy.

Results-based Financing

This report explores the application and potential of results-based financing (RBF) as an innovative financial mechanism. It highlights how RBF can align incentives, transfer risk, and incorporate verification to accelerate private sector funding for climate objectives. The paper discusses various RBF structures, from linking payments to simple outputs like trees planted to more complex outcomes such as forest restoration, and considers its economic rationale, advantages, and limitations in driving sustainable development and climate action.

The Spaces of Social Finance: Poverty Regulation Through the “invisible Heart” of Markets

This dissertation critically examines social finance as a mechanism for poverty regulation, questioning whether it truly creates broader social benefits or entrenches financial logics into social welfare. Through case studies, it analyses how social finance, particularly social impact bonds, represents and values financial and social impact. The research suggests that social finance may shift governance towards profit logics, prioritizing investor decisions and segmenting populations based on investment attractiveness, rather than fundamentally altering financial practices.

A Proposed Framework to Analyse the Impact Investing Ecosystem in a Cross-country Perspective

This study develops an impact investing ecosystem framework, presenting a comprehensive overview of the sector and identifying key challenges and possibilities. Using Japan and Singapore as case studies, it reveals small market scales and unique development challenges. The proposed framework, drawing on the entrepreneurial ecosystem approach, offers a holistic view of enabling actors, potential, and challenges, aiding in the design of suitable policies for impact investing growth.

Regional Differences in Impact Investment: a Theory of Impact Investing Ecosystems

This paper explores the regional variations in impact investment, proposing a theory of impact investing ecosystems. It delves into the factors that contribute to the unique development and characteristics of impact investment across different regions. The study examines how local contexts, including entrepreneurship, innovation, and resource acquisition dynamics, shape the evolution of these ecosystems. Understanding these differences is crucial for fostering more effective and tailored impact investment strategies globally. The theory highlights the interconnectedness of various elements within an ecosystem that influence its capacity for social and financial returns.

Sustainable Asset Valuation (savi) of Senegal’s Saloum Delta

This report presents the results of a Sustainable Asset Valuation (SAVi) assessment of the Saloum Delta in Senegal, providing an economic valuation of its contribution to local livelihoods and regional development. The study reveals that the value of the ecosystem services provided by the Delta is degrading. It simulates various scenarios to assess how different interventions might affect the Delta’s economic contribution. The findings aim to inform stakeholders in identifying strategies that both protect the ecosystem and increase revenues from its services, promoting continued maintenance.

Performance of Impact Investing: a Value Creation Approach

This article proposes a value creation approach to assess the performance of impact investing. It examines how impact investees, often social enterprises, generate both financial and social value, highlighting the concept of hybridity. The authors argue for a holistic understanding of performance that integrates both dimensions, moving beyond traditional financial metrics to capture the full scope of value generated by impact investments. This framework aims to provide a more comprehensive evaluation of impact investment efficacy.

The Structuring of Social Finance

This paper explores the emerging approaches to structuring social finance for environmentally and socially impactful projects, conceptualizing social finance as a pre-paradigmatic field. It discusses how leading social finance institutions adopt different investment rationalities to achieve positive social impact. The analysis highlights two primary forms, social impact investment and ethical banking, which drive the institutionalisation and paradigm-building process. It also examines how these forms differ in business models while aiming for social impact.

Socially Responsible/impact Investing: Theoretical and Empirical Issues

This paper delves into socially responsible investing (SRI) and impact investing, exploring their theoretical underpinnings and empirical issues. It examines how these investment approaches aim to generate both financial returns and positive social or environmental outcomes. The authors discuss various instruments like Social Impact Bonds (SIBs) and the concept of blended finance, highlighting the complexities and challenges in integrating social goals with financial objectives within capital markets. The research provides insights into balancing profit and social benefit in investment decisions.
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