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In the current era, entire global economies are transitioning to sustainable development because of global warming and climate change. Due to turbulence in environmental issues such as weather shocks, climate change and basic infrastructure and industrial planning, many countries are changing their approach and taking green steps. This paper assesses sustainable finance in India and the ways in which India can mitigate climate changing risk toward zero carbon policy and supporting SDGs 2030. It talks about the physical and transitional climate risks in India like surface temperature, heat wave concourse, etc., and provides a comprehensive analysis of how the corporate sector is imparting its role in sustainable nature through corporate social responsibility (CSR). India is an emerging economy where energy is an essential component. This study analyzes about supply of energy and how India is shifting from traditional energy sources to renewal energy sources.

Thus, the objective of this study is to focus on the initiatives taken by the Indian government for sustainable finance through green bond policy at national and international platforms using the Panchamrit framework adopted by India thereby focusing on India’s sustainable policy support for SDGs 2030. Also, this research proposes numerous recommendations for future sustainable finance research in the context to India, which includes developing and diffusing innovative sustainable financing instruments, magnifying, and managing the profitability and returns of sustainable financing, making sustainable finance more sustainable, and leveraging the power of new-age technologies for sustainable finance.

Analyzing financial development and investment in Turkey between 1960 and 2008, this paper illustrates how financial development affects investment decisions in a dynamic model of the firm under financial frictions. A composite index is constructed of three alternative financial development measures. The bounds testing approach was used to test for the existence of long-run levels relationships and long-run levels relationships were estimated using the autoregressive distributed lag method. Both short- and long-run causality tests were performed. Results indicate that financial development, budget balance, and total credit to the private sector positively and significantly affect investment.

In recent years, China has been catching-up with other advanced economies and become one of the “leading geese” in the Asian economy. China not only plays a leading role in regional production network but also in various regional economic cooperation. Indonesia, being one of the following geese, needs to adjust its position to benefit from this change in global and regional order. While other more advanced economies have less to offer, Indonesia has gradually moved closer toward China in terms of economic cooperation. Using the flying geese model, this paper argues that China’s BRI might change trade and investment trends in Indonesia. China BRI might complement the role of Japan as a catalyst for economic development in the Asian region in general and in Indonesia in particular. There is no official BRI project agreed by Indonesia so far. However, there are a number completed and ongoing China–Indonesia projects, which arguably might pave the way for future BRI investment. Currently, apart from the Jakarta–Bandung High speed railways, most of the projects are concentrated in resource-exploitation needed by China and the fulfilment of Indonesian development needs, such as power generation, mineral smelters and industrial parks. From the Beijing’s perspective, these projects are perceived as part of BRI. Since these so-called BRI projects have not been completed, it is therefore impossible to assess their impacts on Indonesia’s industrialization at this point. However, we can still argue that BRI might have initiated a new type of investment that might in turn change the industrial trends, structure and performance in Indonesia. If this change leads to improvement in products quality or value added, industrial upgrading, technological transfer and export boost, then one may argue that BRI has brought promised benefits to the host economy (i.e., Indonesia). Otherwise, the benefits would be negligible.

Examining the impact of remittances on private investment, the study finds that remittances have an adverse impact on private investment and hence is apprehensive about its net positive impact on output growth in India. Therefore, the study suggests that the government policy should be designed toward inducing private sector to allocate more remittances for investments for leveling up the rate of economic growth. Otherwise, a significant proportion of remittances would result in increase in private consumption without desired contributory impact. The study also observes crowding out impact of public sector investment, while openness measure raises private sector investment.

We study an optimal consumption and investment problem in a possibly incomplete market with general, not necessarily convex, stochastic constraints. We provide explicit solutions for investors with exponential, logarithmic as well as power utility and show that they are unique if the constraints are convex. Our approach is based on martingale methods that rely on results on the existence and uniqueness of solutions to BSDEs with drivers of quadratic growth.

Developing Asia has grown faster than other parts of the world for decades. However, population aging is expected to pose significant headwinds to the region’s future economic growth. We update and enhance the analysis of Park and Shin (2012) to project the impact of population aging on developing Asia’s growth between 2021 and 2050. Our projections indicate that a demographic transition will have a substantial negative effect on the region’s future growth, but the effect varies across economies. Older economies will suffer a demographic tax, whereas younger economies will continue to enjoy a positive but declining demographic dividend.

We present an analysis of inter-regional investment stocks within Europe from a complex networks perspective. We consider two different levels: first, we compute the inward–outward investment stocks at the level of firms, based on ownership shares and number of employees; then we estimate the inward–outward investment stock at the level of regions in Europe, by aggregating the ownership network of firms, based on their headquarter location. To our knowledge, there is no similar approach in the literature so far, and we believe that it may lead to important applications for policy making. In the present paper, we focus on the statistical distributions and the scaling laws, while in further studies we will analyze the structure of the network and its relation to geographical space. We find that while outward investment and activity of firms are power law distributed with a similar exponent, for regions these quantities are better described by a log-normal distribution. At both levels we also find scaling laws relating investment to activity and connectivity. In particular, we find that investment stock scales as a power law of the connectivity, as previously found for stock market data.

Existing studies document that cash holdings are more valuable for financially constrained firms than for financially unconstrained firms. We investigate whether the relation between financial constraints and the value of corporate cash holdings varies across firms with different engagement in research and development activity. Among firms with R&D investment, the marginal value of cash is significantly higher for financially constrained firms than unconstrained ones, whereas this difference is weak among firms without R&D investment. Our findings are robust to alternative measures of financial constraints and alternative methods to define R&D intensity. Our study extends the cash literature by showing that the value of cash holdings is affected by the status of financial constraints and the nature of investment jointly.

Personal Finance Management (PFM) is crucial to control money to ensure that people have a comfortable present as well as secure future. It’s important for every individual to manage his finance digitally in the digital age. This study aims to identify the main dimensions of PFM from literature review and empirically test the impact of its each domain on the overall Digitalized Financial Management Behavior (DFMB). Also, the study verified the psychometric properties of the tool used to measure Personal Financial Management Behavior (PFMB) using digital platforms. The questionnaire was online administrated using Google forms among 388 young adults in the National Capital Territory (NCT) of India. The Kaiser–Meyer–Olkin (KMO) test of sampling adequacy and Bartlett’s test, linearity assessment, data screening were done in International Business Machines Statistical Package for Social Sciences (IBM SPSS). Factor analysis was done for unidimensionality assessment, bootstrapping (5000 resamples), and reliability and validity statistics in SmartPLS. The study identified six key dimensions of PFM from the existing significant literature and empirically verified the psychometric properties of the instrument in digital context. The resultant instrument includes 25 items under the six constructs. The study found that spending, credit management, saving behavior, personal cash management, investment and insurance are theoretically and empirically important determinants of PFM practices using digital platform therefore more attention need to be paid to these determinants for promoting sound DFMB.

This paper examines the dynamics of saving–investment (S–I) relationship in a group of 10 newly industrialized countries (NICs) over the period from 1970 to 2010 using a panel error correction model. By applying the Pedroni and Westerlund cointegration tests, we find that the saving and investment are cointegrated. We apply the fully modified OLS and dynamic OLS to a set of panel error correction models to estimate the short-and long-run relationship between S–I rates and interest rate differentials. We find that the degree of capital mobility is higher when the NICs are more open to their capital control policies after 1980s.

This paper presents a switching regression model of investment decision where the probability of a firm facing financial constraint is endogenously determined. The approach, therefore, obviates the use of a priori criteria to exogenously identify the financially constrained firms, and thereby addresses the potential misclassification problem faced in the existing literature. A sample of 576 Indian manufacturing firms, collected across 15 broad industries is used for this study. The study establishes that financially constrained firms exhibit a much higher investment-cash flow sensitivity than those identified to be unconstrained. It also probes into the possible determinants of financial constraints, and finds empirical support for its hypothesis that young, liquidity constrained and low dividend payout firms are more likely to face financial constraints, when compared to their respective counterparts. This paper also provides some insight into the impact of the ongoing liberalization program on the financial constraints faced by the Indian firms.

We develop a model in which the opportunity for a firm to upgrade its technology to the frontier (at a cost) leads to growth options in the firm's value; that is, a firm's value is the sum of value generated by its current technology plus the value of the option to upgrade. Variation in the technological frontier leads to variation in firm value that is unrelated to current cash flow and investment, though variation in firm value anticipates future upgrades and investment. We simulate this model and show that, consistent with the empirical literature, in situations in which growth options are important, regressions of investment on Tobin's Q and cash flow yield small positive coefficients on Q and larger coefficients on cash flow. We also show that growth options increase the volatility of firm value relative to the volatility of cash flow.

We examine the relation between the presence of an independent director who is a blockholder (IDB) and corporate policies, risk-taking, and market valuation. After accounting for endogeneity, firms with an IDB have significantly (1) lower levels of cash holdings, payout and research and development (R&D) expenditures, (2) higher levels of capital expenditures, and (3) lower risk. The market appears to value IDB presence and the associated decrease in dividend yield. About 75% of the IDBs in our sample are individual investors, who drive most of our results. Our findings suggest that IDB presence plays a valuable role in shaping some corporate policies and allocating corporate resources.

This study explored the impact of income inequality, household energy consumption, government expenditure, and investment on carbon dioxide emissions at the household level over the period 1970–2015 in the United Kingdom. The study applied Clemente–Montanes–Reyes unit root test to identify structural break in the time series. Further, the cointegrating relationship of the time series observations was explored by applying the autoregressive distributed lag model (ARDL) (linear) bounds test approach along with the nonlinear ARDL for making fruitful comparisons in the long-run relationship among the variables. The paper used Bayer–Hanck combined cointegration method for robustness test in the cointegrating methods. In addition, the causality analysis was explored using the Toda–Yamato (1995) method of Granger causality. The results confirmed the existence of cointegration among the variables.The estimated NARDL results show that in the long run the negative asymmetric impact of the income inequality is stronger than the positive impact. The paper concludes that there is an urgent need to reduce income inequality in the United Kingdom to improve equitable consumption of energy at the household level. Last the causality test shows that there exists unidirectional causality from inequality transmission to carbon emissions.

Renewable electricity subsidies have been popular policy instruments to combat climate change because of their ability to offset emissions. This paper studies the long-run welfare benefits of optimizing the design of the existing renewable energy subsidy (the status quo) in the presence of heterogeneity in the offset emissions. In particular, I measure the welfare gain from differentiating renewable subsidies across location and time to reflect the environmental benefits from emissions offset in the context of wind energy in the Texas electricity market. I find that the welfare gain from differentiation is small compared to the gain already achieved under the status quo subsidy. In contrast, the optimal emissions tax yields much larger welfare gain because it engages in other cost-effective emissions abatement channels that renewable energy subsidies do not: namely, demand conservation and cross-plant fuel substitution.

India and the Republic of Korea (RoK) are, respectively, the second and sixth largest economies of Asia with significant trade ties since the historic past. India is currently negotiating to upgrade the Comprehensive Economic Partnership Agreement (CEPA) with the RoK, which was operationalized on January 1, 2010. A key area of concern for India has been its increasing trade deficit with the RoK which has more than doubled since 2009–10. This paper aims to analyze the flow of goods, services and investment between the two sides in major sectors of interest in the last decade. Further, it aims to identify barriers to trade and investment for the Indian exporters and areas of improvement in the CEPA and beyond to enhance economic gains for both sides.

This chapter provides insights into varying perspectives on climate change which underpin the politics circumventing this subject. Several reports and experts have discussed the pitfalls of politicking around a subject as overpowering and overwhelming as climate change which has been the outcome of humanity’s unrelenting assault on the very resources which support life on this beautiful blue planet, Earth. Evidently, countries have been evading responsibilities as the pollutants that cause climate change mix across national borders. This blue planet has been warming at an unprecedented rate; especially so in the last 50 years and cooperative actions and mechanisms with the political will to implement these must be the way forward. However, whether governments will cooperate by investing in institutions and technologies and provide required financial support needed to reduce the carbon footprint of human actions depends on their chosen priorities. Countries clearly vary in population, affluence, technology as also in terms of their relative vulnerability to climate impacts — factors that, among others, affect how much they are willing to pay to address global climate change. Hence, in the first section this chapter interrogates the capacity of governments to pledge their commitment to climate action. The second section comprises the structure of the volume as it aims to deepen the debate and understanding of contemporary climate change narratives.

Drawing on expenditure and survey data from the Gold and Sunshine Coasts in Queensland, Australia, this chapter compares expenditures on beaches relative to their recreational benefits. Beaches are found to be exceptional investments. The comparison of the two councils also provides insights into their relative capacity to adapt to the adverse impacts of climate change. The Gold Coast can rely to some extent on historical large investments in infrastructure to defend itself against change. In contrast, the Sunshine Coast has more options which may lower the cost of adaptation e.g., it can rely more heavily on retreating from change in certain locations because of historical investment in dunal buffer zones. However, historical investment patterns impact in different ways on the environmental quality of beaches and the benefits provided to users and non-users. Limitations and areas of future research are also outlined.

This is a study of competing visions or designs of trans-Pacific economic cooperation, and attempts to unify, or retain, the differences that have evolved, in the organization and objectives of the multilateral Asia — Pacific Economic Cooperation (APEC) forum. This analysis also demonstrates the challenges faced by groups of countries with very different political-economy structures and values as they attempt to constitute an arrangement to gain trade advantages. Differences over how best to reach APEC's goals of trade liberalization, the extent to which APEC should be institutionalized, and the items to be put on the agenda of the annual conferences are at times so deep that the effective functioning of the forum itself gets questioned. There has been no shortage of meetings or reports within APEC, except that they typically lead to extremely few concrete proposals that all parties could agree on to implement and evaluate together, and even fewer results.

The contention in designing alternative visions for APEC may be seen as a reflection of opposing interests on liberalization and institutionalization within the forum between the United States, developed or industrialized countries and open export-oriented market economies on the one hand, and China and developing or industrializing countries on the other hand, with Japan having moved from the predominantly “Western” “camp” to the mostly “Asian” one. Fundamentally, while adherents of the “Western” design would like to promote economic competition and perpetuate the advantages that they enjoy with trade and investment liberalization, advocates of the “Asian” vision still believe to some extent in preserving the business-political nexus and industrial policies that have brought a respectable measure of political stability, material prosperity and diplomatic influence to countries like Japan, South Korea, Taiwan and Singapore. These two roadmaps reflect differences of interest and value, and are not easily reconcilable.

In this study, both cross-country and panel techniques have been used to analyze the long-term impact of institutions on investment and economic growth in the context of neoclassical model. The empirical results indicate that both physical and human capital investment have positive impact on economic growth. Economic freedom has a direct impact on economic growth by enhancing factor productivity and indirect by increasing investment. Political and civil liberties also exert positive impact on investment. Further, an important relationship exists between institutional freedom and human capital investment in both cross-country and panel data analysis.