Time for new financing instruments? A market-oriented framework to finance environmentally friendly practices in EU agriculture

Marco Migliorelli and Philippe Dessertine
Additional contact information
Marco Migliorelli: IAE Paris - Sorbonne Business School
Philippe Dessertine: IAE Paris - Sorbonne Business School

Post-Print from HAL

Abstract: 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.

Keywords: Agriculture financing; securitisation; Common Agricultural Policy (CAP); environmentally friendly practices; financial cooperatives (search for similar items in EconPapers)
Date: 2017-10-31
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Journal of Sustainable Finance & Investment, 2017, 8 (1), pp.1-25. ⟨10.1080/20430795.2017.1376270⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:halshs-02103991

DOI: 10.1080/20430795.2017.1376270

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().