In this study, the authors aim to examine green bonds with a broad view and evaluate their different components. They have handled green bonds over their relationship with global public goods. Then, the green bonds are examined as a financial tool to support environmental sustainability. The definition of green bonds and their growing popularity are mentioned before the factors attracting investors to the green bonds market. From the public finance perspective, the most important advantage for investors is explained as the tax advantages and the main characteristics of the tool itself, being transparent and having high standards. They have tried to explain the governance forms of green bonds (private, public, and hybrid). They have pointed out some facts from the green bonds market with the figures. As a whole, this study tries to express the importance of green bonds to finance sustainable energy and production investments for a greener environment. Surely, the authors tried to emphasize the public finance-related areas and they conclude by underlining the importance of that sustainable financial tool.
TopA Glance To A Greener World From The Perspective Of The Environmental Global Public Goods
While globalization and its impacts on national policymakers increase rapidly, human beings affect global policies as well as they are affected by those policies. However, the lifetime of a human is limited but policies tend to have intergenerational influence. That is why sustainability helps us to remember the importance of a long-term perspective.
A sustainable environment is a matter of the next generations in terms of their basic needs and also answers the demands of the current generation. The environment is one of the most important global public goods because of its easily spreadable negative externalities and those externalities should be the concern of everyone.
As known, global public goods are identified as “universal” because of their spreading effects on different countries, population groups, and generations. All the positive or negative externalities of global public goods are universal as a concern of all human beings, generations, and countries (Kaul, 1999: 16). In reality, the impacts of global public goods are mostly global public damages, as pandemics, acid rains, global warming, international terrorism, desertification, fiscal instability, deteriorating labor force standards are spreading across borders (Kanbur v.d., 1999: 56) and emergency action is required. Additionally, the sustainability of energy systems and climate stability carries the characteristics of the global public goods as having low rivalry and being difficult to exclude users (Karlsson-Vinkhuyzen v.d., p.12).
We have exposed all the losses generated by climate change. Rapid climate change creates pressure on the existence of ecosystems. Detecting the reasons for climate change is important but also we need to remember that clean water resources, forests, biodiversity, and other factors need urgent protection.