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Finance and sustainability: From ideology to utopia

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  • Lagoarde-Segot, Thomas
  • Paranque, Bernard

Abstract

This paper is based on the observation that there is a contradiction between the current demands for sustainability and the way the financial system works. Beginning with a discussion of the epistemological assumptions underlying financial theory, it seeks to show how it may be viewed as an Ideology for the financialization of economies and societies. We use the Ricoeurian notion of the cultural imagination to develop a counterpoint Utopia, which we call Finance As A Common. The reflexivity enabled by this Utopia reveals the mental structures in which financial actors are embedded. It also allows us to plot possible pathways for the reconstruction of the financial system, including local currencies, and the renewal of financial knowledge.

Suggested Citation

  • Lagoarde-Segot, Thomas & Paranque, Bernard, 2018. "Finance and sustainability: From ideology to utopia," International Review of Financial Analysis, Elsevier, vol. 55(C), pages 80-92.
    • Handle: RePEc:eee:finana:v:55:y:2018:i:c:p:80-92
    DOI: 10.1016/j.irfa.2017.10.006
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    Cited by:

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    3. Thomas Lagoarde-Segot, 2020. "Financing the Sustainable Development Goals," Sustainability, MDPI, vol. 12(7), pages 1-22, April.
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    5. Sara Dahlman, 2023. "Tinkering Toward the Good––Sustainable Investing Between Utopian Imaginaries and Actualizations," Journal of Business Ethics, Springer, vol. 185(2), pages 281-297, June.
    6. Tzouvanas, Panagiotis & Mamatzakis, Emmanuel C., 2021. "Does it pay to invest in environmental stocks?," International Review of Financial Analysis, Elsevier, vol. 77(C).
    7. Alessandro Rizzello & Abdellah Kabli, 2020. "Sustainable Financial Partnerships for the SDGs: The Case of Social Impact Bonds," Sustainability, MDPI, vol. 12(13), pages 1-22, July.
    8. AHMAD Idris & ALNI Rahmawati & ARNI Surwanti & MAMDUH M. Hanafi, 2023. "Financial Literacy To Improve Sustainability: A Bibliometric Analysis," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(3), pages 24-43, December.
    9. D'Amato, Valeria & Di Lorenzo, Emilia & Piscopo, Gabriella & Sibillo, Marilena & Trotta, Annarita, 2024. "Insurance business and social sustainability: A proposal," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
    10. Zhang, Lipai & Li, Biao, 2022. "Mutual supervision or conspiracy? The incentive effect of multiple large shareholders on audit quality requirements," International Review of Financial Analysis, Elsevier, vol. 83(C).
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    More about this item

    Keywords

    Finance; Epistemology; Ideology; Financialization; Sustainability; Local Currencies;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General

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