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A Primer on Green Finance: From Wishful Thinking to Marginal Impact

Author

Listed:
  • Krahnen Jan

    (House of Finance, Goethe University Frankfurt, Frankfurt am Main, Hessen, Germany)

  • Rocholl Jörg

    (ESMT European School of Management and Technology GmbH, Berlin, Germany)

  • Thum Marcel

    (Faculty of Business and Economics, Business and Economics, Technische Universitat Dresden, 01062, Dresden, Germany)

Abstract

We raise some critical points against a naïve interpretation of “green finance” products and strategies. These critical insights are the background against which we take a closer look at instruments and policies that might allow green finance to become more impactful. In particular, we focus on the role of a taxonomy and investor activism. We also describe the interaction of government policies with green finance practice – an aspect, which has been mostly neglected in policy debates but needs to be taken into account. Finally, the special case of green government bonds is discussed.

Suggested Citation

  • Krahnen Jan & Rocholl Jörg & Thum Marcel, 2023. "A Primer on Green Finance: From Wishful Thinking to Marginal Impact," Review of Economics, De Gruyter, vol. 74(1), pages 1-19, April.
    • Handle: RePEc:lus:reveco:v:74:y:2023:i:1:p:1-19:n:3
    DOI: 10.1515/roe-2023-0019
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    3. Krahnen, Jan Pieter, 2023. "Welche Rolle spielt die Finanzwirtschaft im Angesicht des Klimawandels?," SAFE Policy Letters 101, Leibniz Institute for Financial Research SAFE.
    4. Hendrik Hakenes & Eva Schliephake, 2021. "Responsible Investment and Responsible Consumption," ECONtribute Discussion Papers Series 134, University of Bonn and University of Cologne, Germany.

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