The role of finance in environmental innovation diffusion: An evolutionary modeling approach

D’Orazio, Paola and Marco Valente
Authors registered in the RePEc Author Service: Paola D'Orazio

Journal of Economic Behavior & Organization, 2019, vol. 162, issue C, 417-439

Abstract: The implementation of climate adaptation and mitigation policies depend on the development of green technologies whose diffusion is constrained by a number of barriers which prevent them to spread broadly and at a fast pace. By means of an agent-based computational model, the paper investigates the macro and micro economic dynamics considering the role of a “traditional” commercial bank and a state investment bank that explicitly supports green investments. Simulation results emphasize that green finance matter and that the market diffusion of environmental innovation is more pronounced when the presence of the public investment bank is combined with strong consumers’ preferences oriented towards environmental quality. The relevance of the paper is twofold. Besides contributing to the literature on the finance-innovation nexus by considering the role of climate finance within a complex systems framework, it provides a model that can be used as a tool to explore policies to foster environmental innovation diffusion.

Keywords: Agent-based computational economics; Climate finance; Public investment banks; Environmental innovation; Industrial dynamics; Innovation diffusion (search for similar items in EconPapers)
JEL-codes: G2 L1 O33 O44 Q55 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268118303457
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:162:y:2019:i:c:p:417-439

DOI: 10.1016/j.jebo.2018.12.015

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().