Analysis of the Capital Structure in Sustainable Infrastructure Systems: A Methodological Approach

Juan David González-Ruiz, Sergio Botero-Botero and Alejandro Peña
Additional contact information
Sergio Botero-Botero: Departamento de Ingeniería de la Organización, Facultad de Minas, Universidad Nacional de Colombia, Sede Medellín, Medellín 050034, Colombia
Alejandro Peña: Grupo de Investigación en Información y Gestión, Escuela de Administración, Universidad EAFIT, Medellín 050022, Colombia

Sustainability, 2022, vol. 14, issue 19, 1-21

Abstract: Many countries require financial mechanisms, leading to increasing coverage through sustainable infrastructure systems (SISs). However, establishing such mechanisms demands innovative approaches and analyses that contribute to the development of financial schemes by providing a new vision for private investors and public entities promoting sustainable development and, therefore, the creation of new eco-financial assets. To address this need, this paper proposes a methodology for analyzing capital structure in sustainable infrastructure systems, which is validated in a case study. Thus, a mathematical model that identifies the impact on the final capital structure according to an investment plan and capital structures per period is developed. Additionally, this proposal integrates a financial framework that involves sustainable financing, capital markets, and public–private sectors. The results of the case study show that debt-service capacity was always higher than 1.0×. Hence, this study provides a better understanding of financing processes for SISs. Additionally, this contributes to the debate on infrastructure financing and its implications for main stakeholders.

Keywords: capital structure; infrastructure; project finance; public–private partnerships; sustainability; sustainable financing (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/19/12662/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/19/12662/ (text/html)

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:gam:jsusta:v:14:y:2022:i:19:p:12662-:d:933970

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().