IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v55y2018i9p1839-1858.html
   My bibliography  Save this article

Promoting investment in sustainable urban development with JESSICA: Outcomes of a new EU policy initiative

Author

Listed:
  • Michael Nadler

    (TU Dortmund University, Germany)

  • Claudia Nadler

    (RWTH Aachen University, Germany)

Abstract

Between 2007 and 2015, the European Commission invested €1.846 billion in a new policy initiative called JESSICA (Joint European Support for Sustainable Investment in City Areas). Since European cities in particular have perceived a shortage of investment dedicated to urban regeneration projects, JESSICA will finance more than 2000 higher risk projects through Urban Development Funds as a financial intermediary in order to create economic stimulus. Moreover, replacing traditional grant funding by revolving financial instruments (loans, guarantees and equity capital) is a central part of the ongoing reform of EU cohesion policy. The special challenge of JESSICA is to combine these financial engineering instruments with integrated urban planning issues in a sustainable fund model. However, it is not yet clear whether this new policy instrument is as effective as European decision-makers believe, because up to now there has been no evaluation available on how successful JESSICA has been in achieving its ambitious objectives. Our empirical analysis is the first one to cover the impact of this innovative EU initiative in all 28 EU member states by making outcomes of the policy change measurable in monetary terms. Since revolving financial engineering instruments are a central part of the Europe2020 strategy, we derive key success factors for sustainable urban finance and give recommendations to adjust the policy instrument in the current programming period as part of the ongoing process of a reformed EU cohesion policy.

Suggested Citation

  • Michael Nadler & Claudia Nadler, 2018. "Promoting investment in sustainable urban development with JESSICA: Outcomes of a new EU policy initiative," Urban Studies, Urban Studies Journal Limited, vol. 55(9), pages 1839-1858, July.
    • Handle: RePEc:sae:urbstu:v:55:y:2018:i:9:p:1839-1858
    DOI: 10.1177/0042098017702815
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098017702815
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0042098017702815?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Salamon, Lester M., 2014. "New Frontiers of Philanthropy: A Guide to the New Tools and New Actors that Are Reshaping Global Philanthropy and Social Investing," OUP Catalogue, Oxford University Press, number 9780199357543.
    2. Tarmo Kalvet & Alf Vanags & Klaudijus Maniokas, 2012. "Financial engineering instruments: the way forward for cohesion policy support? Recent experience from the Baltic states," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 12(1), pages 5-22, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiangping Jia, 2020. "Priming the pump of impact entrepreneurship and social finance in China," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(4), pages 1293-1311, December.
    2. Charalampos Agiropoulos & Michael L. Polemis & Michael Siopsis & Sotiris Karkalakos, 2022. "Revisiting the finance‐growth nexus: A socioeconomic approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2762-2783, July.
    3. Lall, Saurabh Ajay, 2019. "From Legitimacy to Learning – How Impact Measurement Perceptions and Practices Evolve in Social Enterprise – Social Finance Organization Relationships," SocArXiv 7z8nc, Center for Open Science.
    4. Brandstetter Lisa & Lehner Othmar M., 2015. "Opening the Market for Impact Investments: The Need for Adapted Portfolio Tools," Entrepreneurship Research Journal, De Gruyter, vol. 5(2), pages 87-107, April.
    5. Maria Cristina Arcuri & Gino Gandolfi & Fabrizio Laurini, 2023. "Robust portfolio optimization for banking foundations: a CVaR approach for asset allocation with mandatory constraints," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 31(2), pages 557-581, June.
    6. Mario La Torre & Helen Chiappini (ed.), 2020. "Contemporary Issues in Sustainable Finance," Palgrave Studies in Impact Finance, Palgrave Macmillan, number 978-3-030-40248-8, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:55:y:2018:i:9:p:1839-1858. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.