Time for new financing instruments? A market-oriented framework to finance environmentally friendly practices in EU agriculture
Marco Migliorelli and
Journal of Sustainable Finance & Investment, 2018, vol. 8, issue 1, 1-25
We observe that the actual system of support to agriculture in Europe neglects many of the existing and potential interactions in the financing chain and, for this reason, remains scarcely participated in by institutional investors. In an attempt to overcome this issue, this paper provides a theoretical framework for a market-oriented financing of agriculture in the EU, with particular emphasis on environmentally friendly practices. In more detail, the paper identifies the conditions for implementing a comprehensive originate-and-distribute securitisation mechanism for environmental loans backed by a general public guarantee. The discussion provided allows the identification of the main gaps between the target financing infrastructure and the instruments currently available in the market. In this respect, two elements would deserve a specific implementation. First, an integrated policy programme able to leverage the public spending though a balance of grants (which should support only unprofitable environmentally friendly practices) and external credit enhancer in the securitisation mechanism. Second, a specialised data set able to provide reliable environmental and financial performance indicators on different environmentally friendly investments to farmers, intermediaries and institutional investors.
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:jsustf:v:8:y:2018:i:1:p:1-25
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Sustainable Finance & Investment is currently edited by Dr Matthew Haigh
More articles in Journal of Sustainable Finance & Investment from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().