Delivers a comprehensive portrait of environmental finance, from presentations of empirical examples to explorations of theoretical and regulatory issues.

Table of Contents

• List of Contributors
• Editors' Biography
• Contributors' Biography
• Acknowledgments
• Section 1: Environmental Regulations Post the Kyoto Protocol on Climate Change
• 1. Climate Change and Kyoto Protocol An Overview
• 1.1 Introduction
• 1.2 Global Warming
• 1.2.1 Current Evidence of Climate Change
• 1.2.2 Future Effects
• 1.2.3 Measures Required
• 1.3 United Nations Framework Convention on Climate Change
• 1.3.1 Objectives of UNFCCC
• 1.3.2 UNFCCC—Secretariat
• 1.3.3 Bodies of UNFCCC
• 1.4 Kyoto Protocol
• 1.4.1 Mechanisms of Kyoto Protocol
• 1.5 CDM: Project Eligibility, Project Cycle, and Executive Board
• 1.5.1 CDM Project Eligibility
• 1.5.2 CDM Project Cycle
• 1.5.3 CDM Executive Board
• 1.6 Carbon Finance and Types of Emission Reduction Credits
• 1.7 Climate Finance
• 1.8 National Level Emission Trading Systems
• 1.8.1 European Union: EUETS
• 1.8.2 Switzerland: Swiss ETS
• 1.8.3 New Zealand: NZ ETS
• 1.8.4 Australia: Australian ETS
• 1.8.5 Kazakhstan: ETS
• 1.8.6 China: Pilot Carbon Trading System
• 1.8.7 South Korea: Korean ETS
• 1.8.8 India: PAT Scheme
• 1.9 Kyoto Protocol: Journey and Current Developments
• 1.10 Conclusion
• References
• 2. Environmental Policies Post the Kyoto Protocol on Climate Change Evidence from the US and Japan
• 2.1 Introduction
• 2.2 Acid Rain
• 2.3 Asbestos
• 2.4 Agriculture
• 2.5 Electric Utilities
• 2.6 Climate Change
• 2.7 Oil and Gas Extraction Sector
• 2.8 Toxic Release Inventory
• 2.9 Construction Sector
• 2.10 Transportation Sector
• 2.11 Oil Spills and Hazardous Substance Releases
• 2.12 Risk Management Plan Rule
• 2.13 Water
• 2.14 Japanese Environmental Policies (MoE Environmental Policy)
• 2.14.1 Basic Environment Plan
• 2.14.2 Environment and Economy
• 2.14.3 Environment and Taxation
• 2.14.4 Environment Assessment
• 2.14.5 Environment and Education for Sustainable Development
• 2.14.6 Environment and Research and Technology
• 2.15 Global Environment
• 2.16 Waste and Recycling
• 2.17 Air and Transportation
• 2.18 Water, Soil, and the Ground Environment
• 2.19 Health and Chemicals
• 2.20 Nature and Parks
• 2.21 Conclusion
• References
• 3. Efficiency of U.S. State EPA Emission Rate Goals for 2030 A Data Envelopment Analysis Approach
• 3.1 Introduction
• 3.2 Literature Review
• 3.3 Methodology
• 3.3.1 Envelopment Model
• 3.3.2 Cross Efficiency
• 3.3.3 Super Efficiency
• 3.4 Data
• 3.5 Results
• 3.6 Conclusion
• Acknowledgment
• References
• Section 2: Environmental Economics
• 4. Environmental Water Governance in the Murray-Darling Basin of Australia The Movement from Regulation and Engineering to Economic-Based Instruments
• 4.1 Introduction
• 4.2 Water Management Governance Tools
• 4.2.1 Demand and Supply Water Management Strategies
• 4.3 The Murray-Darling Basin
• 4.4 Phases in Australia's Water Management in the MDB
• 4.4.1 The Establishment and Exploration Phase
• 4.4.2 The Development and Supply Phase
• 4.4.3 The Scarcity Phase and Factors Contributing to the Introduction of Economic Instruments
• 4.4.3.1 The Rising Cost of Supply Management
• 4.4.3.2 Environmental Concern
• 4.4.3.3 Macroeconomic Factors
• 4.5 The Development and Extension of Economic Instruments in the MDB
• 4.5.1 Overview of Twenty-First Century MDB Water Reform
• 4.5.2 Development of Water Markets in the MDB
• 4.5.3 COAG Reforms and the “Cap”
• 4.5.4 The National Water Initiative (2004)
• 4.5.4.1 Unbundling of Water Rights
• 4.5.4.2 The Living Murray Program
• 4.5.5 The Water Act and Institutional Change (2007)
• 4.5.6 Water for the Future Initiative (2010)
• 4.5.7 The Basin Plan (2012)
• 4.6 Future Policy Directions
• 4.7 Conclusion
• Appendix A: List of Abbreviations
• References
• 5. Damages Evaluation, Periodic Floods, and Local Sea Level Rise The Case of Venice, Italy
• 5.1 Introduction
• 5.2 Data and Methods
• 5.3 Results
• 5.4 Conclusion
• Acknowledgments
• References
• 6. Corporate Social Responsibility and Macroeconomic Uncertainty
• 6.1 Introduction
• 6.2 CSR and Macroeconomic Uncertainty
• 6.3 Data
• 6.3.1 Events Data
• 6.3.2 Cumulative Abnormal Return
• 6.3.2.1 Conditional Volatility of CAR (Vol)
• 6.3.3 Capturing Market Conditions
• 6.3.4 Summary Statistics
• 6.4 Empirical Findings
• 6.4.1 Main Findings
• 6.4.2 Robustness Checks
• 6.5 Conclusion
• Acknowledgments
• References
• 7. Public Value of Environmental Investments A Conceptual Outlook on the Management of Normatively Determined Risks
• 7.1 Introduction
• 7.2 The Rise of Environmental Investments
• 7.3 Historical Backgrounds
• 7.4 Public Value Theory and Normative Value Creation
• 7.5 Empirical Evidence on Public Value Measurement: The Public Value Atlas
• 7.6 Public Value and Reputational Risks
• 7.7 Hedging Normative Risks by Buying a Put-on Public Value
• 7.8 Conclusion
• References
• 8. What Holds Back Eco-innovations? A “Green Growth Diagnostics” Approach
• 8.1 Introduction
• 8.2 Eco-innovation for Greening Growth
• 8.2.1 Innovations as Enabler for Greening Growth
• 8.2.2 The Concept of Eco-innovation
• 8.3 What Holds Back Eco-innovations?
• 8.3.1 A Conceptual Frame
• 8.3.2 Low Appropriability
• 8.3.2.1 Market Failures
• 8.3.2.2 Governance Failures
• 8.3.3 Low Economic Returns
• 8.4 Identifying and Prioritizing Barriers to Eco-innovation
• 8.4.1 Prioritizing Policies toward Eco-innovation
• 8.4.2 Green Growth Diagnostics: A Useful Tool for Prioritizing?
• 8.5 Conclusion
• References
• Appendix 1
• 9. Trade Openness and CO2 Emission Evidence from a SIDS
• 9.1 Introduction
• 9.2 Literature Review
• 9.2.1 Theoretical Review
• 9.2.2 Empirical Review
• 9.3 Methodology and Analysis
• 9.3.1 The Econometric Model
• 9.3.2 Estimation Results of the ARDL
• 9.4 Conclusion
• References
• 10. Will TAFTA Be Good or Bad for the Environment?
• 10.1 Introduction
• 10.2 Literature Review
• 10.3 Data Sources
• 10.4 Four Estimating Equations
• Model 10.2: Adding Income Inequality and GE
• Model 10.3: Adding the Capital to Labor Ratio
• Model 10.4: Adding the Trade Variables
• 10.5 Empirical Methodology
• 10.6 Empirical Results
• 10.7 Conclusion
• References
• 11. Feminism, Environmental Economics, and Accountability
• 11.1 Introduction
• 11.2 Impact of Feminism in Economics
• 11.3 Female Economists' Contributions in Environmental Economics
• 11.3.1 Esther Duflo
• 11.3.1.1 Duffy's Work and Accountability for the Environment
• 11.3.2 (The Late) Professor Elinor Ostrom (1933–2012)
• 11.3.2.1 Accountability and Ostrom
• 11.3.3 Anny Ratnawati
• 11.3.4 Professor Armida Salsiah Alisjahbana
• 11.3.5 Dr Shamshad Akhtar
• 11.3.5.1 United Nations ESCAP
• 11.3.5.2 Contributions of Dr Shamshad Akhtar, Summary
• 11.3.6 Upcoming Female Environmental Economists
• 11.3.6.1 Dr Phoebe Koundouri
• 11.3.6.2 Dr Celine Nauges
• 11.3.6.3 Associate Professor Sarah Wheeler
• 11.4 Concluding Comments
• References
• Section 3: Environmental/Sustainable Finance
• 12. Does National Culture Affect Attitudes toward Environment Friendly Practices?
• 12.1 Introduction
• 12.2 Literature Review
• 12.3 Methodology and Data
• 12.4 Empirical Results
• 12.5 Conclusion
• References
• 13. The Economic and Financial Effects of Environmental Regulation
• 13.1 Introduction
• 13.2 The Costs of Production
• 13.3 Plant Location
• 13.4 Productivity at the Firm and Sectoral Level
• 13.5 Stock Prices, Returns, and Risk
• 13.6 Employment
• 13.7 Net Exports
• 13.8 Competitiveness
• 13.9 Economic Growth, Environmental Degradation, and Regulation
• 13.10 Aggregate Productivity
• 13.11 Conclusion
• References
• 14. Environmental Challenges and Financial Market Opportunities
• 14.1 Introduction
• 14.2 Theory and Experiences with Cap-and-Trade
• 14.3 The Kyoto Protocol and Global Participation
• 14.4 Expected Future Emissions and Caps
• 14.5 The Size and Extent of Environmental Securitization
• 14.6 Conclusions
• References
• 15. Environmental Finance
• 15.1 Introduction
• 15.2 Green Bonds
• 15.2.1 Definition of Green Bonds
• 15.2.2 Origins
• 15.2.3 Green Bond Funds
• 15.2.4 Indexes
• 15.2.5 Projects Financed Using Green Bonds
• 15.2.6 Environmental Investing
• 15.2.7 REDD/REDD+ Financing
• 15.2.8 Debt-for-Nature Swaps
• 15.3 Conclusion
• References
• 16. The Relationship between Screening Intensity and Performance of Socially Responsible Investment Funds
• 16.1 Introduction
• 16.2 Background, Literature Review, and Research Questions
• 16.3 Data and Methods
• 16.3.1 Data
• 16.3.2 Time-Series Analysis
• 16.3.3 Cross-sectional Analysis
• 16.4 Results
• 16.4.1 Descriptive Statistics
• 16.4.2 Performance Analysis
• 16.4.3 Analysis of Types of Companies
• 16.5 Conclusion
• References
• 17. Using CO2 Emission Allowances in Equity Portfolios
• 17.1 Introduction
• 17.2 Carbon Allowances and Literature Review
• 17.3 Data and Methodology
• 17.3.1 Data
• 17.3.2 Methodology
• 17.4 Results
• 17.5 Conclusion
• References
• 18. The Returns from Investing in Water Markets in Australia
• 18.1 Introduction
• 18.2 Background of Water Markets in Australia
• 18.3 Water Investment Literature Review
• 18.4 Data
• 18.4.1 Case Study Information
• 18.4.2 Basic GMID Water Market Statistics
• 18.5 Methodology
• 18.5.1 Discounted Cash Flow Analysis
• 18.5.2 Comparative Advantage of Water Market Investments
• 18.6 Discussion and Conclusions
• Acknowledgment
• References
• 19. Product Market Competition and Corporate Environmental Performance
• 19.1 Introduction
• 19.2 Literature Review
• 19.3 Data and Methodology
• 19.3.1 Environment Sustainability Index
• 19.3.2 Product Market Competition
• 19.3.2.1 Sales HHI
• 19.3.2.2 Asset Concentration
• 19.3.2.3 Number of Employees
• 19.3.2.4 Number of Companies
• 19.3.3 Industry Classification
• 19.3.4 Control Variables
• 19.4 Empirical Results
• 19.4.1 Sample Characteristics and Distribution
• 19.4.2 Regression Results
• 19.5 Conclusion
• References
• Section 4: Funding and Accounting Systems
• 20. The Costs and Benefits of Cost–Benefit Analysis as Applied to Environmental Regulation
• 20.1 Introduction
• 20.2 Identifying and Measuring Costs
• 20.3 Identifying and Measuring Benefits
• 20.4 Calculating the Present Value of Net Benefits
• 20.5 The CBA Controversy
• 20.6 A Discussion of Controversial Issues
• 20.7 Conclusion
• References
• 21. The Crowdfunding of Renewable Energy Projects
• 21.1 Introduction
• 21.2 Crowdfunding: Facts and Figures
• 21.3 Review of the Literature
• 21.4 The Sample
• 21.5 The Determinants of the Campaign Success
• 21.6 Conclusion
• References
• 22. Management Accounting and Biodiversity The Cultural Circuit of Capitalism and the Social Construction of a Perfect Market?
• 22.1 Introduction
• 22.2 FCA in Managerial Decision Making
• 22.3 The Cultural Circuit of Capitalism: Management Accounting and Control
• 22.4 The Deafening Noise: Biodiversity Crisis Shocks Functioning Markets?
• 22.5 The Sellers: Municipal Council Operating in a WHS
• 22.6 The Buyers Multinational Coal Mining
• 22.7 Conclusion: The Biodiversity Market and FCA
• Acknowledgments
• References
• Appendix 22.1: Ecosystem Credits—Determining the Current Site Value Score for a Vegetation Zone at the Development or Biobank Site