Green Microfinance. Characteristics of microfinance institutions involved in environmental management

Marion Allet and Marek Hudon

No 13-005, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: In recent years, development practice has seen that microfinance institutions (MFIs), beyond their financial and social objectives, start considering their environmental bottom line. Yet, little is known on the characteristics of institutions involved in environmental management. For the first time, this paper empirically identifies the characteristics of these ‘green’ MFIs on a sample of 160 microfinance institutions worldwide. Basing our analysis on various econometric tests, we find that larger MFIs and MFIs registered as banks tend to perform better in environmental policy and environmental risk assessment. Furthermore, more mature MFIs tend to have a better environmental performance, in particular in the provision of green microcredit and environmental non-financial services. On the other hand, financial performance is not significantly related to environmental performance, suggesting that ‘green’ MFIs are not more or less profitable than other microfinance institutions.

Keywords: Microfinance; Environment; Microcredit; Corporate Social Responsibility; Size; Financial Performance (search for similar items in EconPapers)
JEL-codes: D20 G21 Q01 Q56 (search for similar items in EconPapers)
Pages: 37 p.
Date: 2013-01-25
New Economics Papers: this item is included in nep-ban, nep-env and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Journal Article: Green Microfinance: Characteristics of Microfinance Institutions Involved in Environmental Management (2015)
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