The Theoretical Perspective of Green Finance

This book chapter delves into the theoretical contest of green finance, exploring diverse perspectives from neoclassical economics, institutional economics, and behavioral economics. Through a comprehensive analysis, it synthesizes insights on the complexities and challenges inherent in mobilizing capital toward environmental sustainability. Implications for practice and policy are delineated, highlighting the importance of integrating market incentives, regulatory frameworks, and societal norms to promote green finance initiatives. Looking ahead, future research and implementation efforts should focus on enhancing empirical research, fostering innovation in green financial instruments, and promoting education and capacity-building initiatives. By leveraging emerging technologies, fostering partnerships between public and private stakeholders, and building awareness of environmental risks and opportunities, stakeholders can accelerate the transition toward a more sustainable and resilient global economy. Ultimately, the chapter underscores the imperative of mobilizing capital toward environmental sustainability and emphasizes the role of finance in building a greener, more prosperous future for all.