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Policies to Attract Private Investment and Finance in Green Energy Projects

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The Handbook of Energy Policy

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Abstract

Various roadmaps and strategies have been proposed to promote environmental protection in the last few decades; however, this process has not been appropriate. Private investments in green energy projects are hampered by insufficient capital to finance projects, the high risk of investment, low rates of return, and the lack of capacity in the market actors. This chapter seeks to identify the difficulties in addressing the insufficient investment flows in green projects and offer workable strategies for attracting private capital to these endeavors. Establishing a novel instrument for green credit guarantee schemes to lower the risk of investment, adopting an international or regional carbon taxation scheme, increasing transparency in green regulations, establishing community-based trust funds, and enhancing the role of public financial and nonbanking financial institutions (pension funds and insurance firms) in long-term green investments are practical solutions.

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Authors and Affiliations

  1. School of Global Studies, Tokai University, Hiratsuka, Japan

    Farhad Taghizadeh-Hesary

  2. Faculty of Economics, Keio University, Tokyo, Japan

    Naoyuki Yoshino

  3. Faculty of World Studies, University of Tehran, Tehran, Iran

    Ehsan Rasoulinezhad

  4. TOKAI Research Institute for Environment and Sustainability (TRIES), Tokai University, Hiratsuka, Japan

    Farhad Taghizadeh-Hesary

Authors
  1. Farhad Taghizadeh-Hesary
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  2. Naoyuki Yoshino
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  3. Ehsan Rasoulinezhad
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Correspondence to Farhad Taghizadeh-Hesary .

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Editors and Affiliations

  1. School of Global Studies, Tokai University, Hiratsuka, Kanagawa, Japan

    Farhad Taghizadeh-Hesary

  2. Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China

    Dayong Zhang

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Taghizadeh-Hesary, F., Yoshino, N., Rasoulinezhad, E. (2023). Policies to Attract Private Investment and Finance in Green Energy Projects. In: Taghizadeh-Hesary, F., Zhang, D. (eds) The Handbook of Energy Policy. Springer, Singapore. https://doi.org/10.1007/978-981-19-6778-8_15

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