Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments
<div><p>Renewable energy investments require a substantial amount of capital to provide affordable and accessible energy for everyone in the world, and finding the required capital is one of the greatest challenges faced by governments and private entities. In a macroeconomic perspective...
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2019
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| _version_ | 1864513521761386496 |
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| author | Ibrahim Ari (12058516) |
| author2 | Muammer Koc (16078064) |
| author2_role | author |
| author_facet | Ibrahim Ari (12058516) Muammer Koc (16078064) |
| author_role | author |
| dc.creator.none.fl_str_mv | Ibrahim Ari (12058516) Muammer Koc (16078064) |
| dc.date.none.fl_str_mv | 2019-04-02T03:00:00Z |
| dc.identifier.none.fl_str_mv | 10.3390/su11071967 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Sustainable_Financing_for_Sustainable_Development_Agent-Based_Modeling_of_Alternative_Financing_Models_for_Clean_Energy_Investments/25390663 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Engineering Environmental engineering Human society Political science sustainable economics sustainable finance equity-based financing energy economics agent-based modeling |
| dc.title.none.fl_str_mv | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <div><p>Renewable energy investments require a substantial amount of capital to provide affordable and accessible energy for everyone in the world, and finding the required capital is one of the greatest challenges faced by governments and private entities. In a macroeconomic perspective, national budget deficits and inadequate policy designs hinder public and private investments in renewable projects. These problems lead governments to borrow a considerable amount of money for sustainable development, although such excessive debt-based financing pushes them to unsustainable economic development. This substantial amount of borrowing makes a negative contribution to the high global debt concentration, putting countries’ economic and social development at risk. In line with this, excessive debt-based financing causes an increase in wealth inequality, and when wealth inequality reaches a dramatic level, wars and many other social problems are triggered to correct the course of wealth inequality. In this regard, the motivation behind the study is to develop a set of policy guidelines for sustainable financing models as a solution for these intertwined problems, which are: 1) a financial gap in energy investments; 2) an excessive global debt concentration; and 3) a dramatic increase in wealth inequality. To this end, this study presents a quantitative and comparative proof of concept analysis of alternative financing models in a solar farm investment simulation to investigate the change in wealth inequality and social welfare by reducing debt-based financing and increasing public participation. There are many studies in the literature investigating the evolution of wealth inequality throughout history. However, there is a gap in the literature, and investigating the effects of various policy rules on the evolution of wealth inequality in a future time frame needs to be explored in order to discuss possible policy implications beforehand. In this respect, this paper contributes to the literature by developing simulation models for conventional and alternative financing systems. This enables investigating the changes in wealth inequality and social welfare as a result of various policy implications throughout the simulation time.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Sustainability<br> License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/su11071967" target="_blank">https://dx.doi.org/10.3390/su11071967</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_80221cc3895ffcdeb326f9e79e9bca19 |
| identifier_str_mv | 10.3390/su11071967 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/25390663 |
| publishDate | 2019 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy InvestmentsIbrahim Ari (12058516)Muammer Koc (16078064)EngineeringEnvironmental engineeringHuman societyPolitical sciencesustainable economicssustainable financeequity-based financingenergy economicsagent-based modeling<div><p>Renewable energy investments require a substantial amount of capital to provide affordable and accessible energy for everyone in the world, and finding the required capital is one of the greatest challenges faced by governments and private entities. In a macroeconomic perspective, national budget deficits and inadequate policy designs hinder public and private investments in renewable projects. These problems lead governments to borrow a considerable amount of money for sustainable development, although such excessive debt-based financing pushes them to unsustainable economic development. This substantial amount of borrowing makes a negative contribution to the high global debt concentration, putting countries’ economic and social development at risk. In line with this, excessive debt-based financing causes an increase in wealth inequality, and when wealth inequality reaches a dramatic level, wars and many other social problems are triggered to correct the course of wealth inequality. In this regard, the motivation behind the study is to develop a set of policy guidelines for sustainable financing models as a solution for these intertwined problems, which are: 1) a financial gap in energy investments; 2) an excessive global debt concentration; and 3) a dramatic increase in wealth inequality. To this end, this study presents a quantitative and comparative proof of concept analysis of alternative financing models in a solar farm investment simulation to investigate the change in wealth inequality and social welfare by reducing debt-based financing and increasing public participation. There are many studies in the literature investigating the evolution of wealth inequality throughout history. However, there is a gap in the literature, and investigating the effects of various policy rules on the evolution of wealth inequality in a future time frame needs to be explored in order to discuss possible policy implications beforehand. In this respect, this paper contributes to the literature by developing simulation models for conventional and alternative financing systems. This enables investigating the changes in wealth inequality and social welfare as a result of various policy implications throughout the simulation time.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Sustainability<br> License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/su11071967" target="_blank">https://dx.doi.org/10.3390/su11071967</a></p>2019-04-02T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.3390/su11071967https://figshare.com/articles/journal_contribution/Sustainable_Financing_for_Sustainable_Development_Agent-Based_Modeling_of_Alternative_Financing_Models_for_Clean_Energy_Investments/25390663CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/253906632019-04-02T03:00:00Z |
| spellingShingle | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments Ibrahim Ari (12058516) Engineering Environmental engineering Human society Political science sustainable economics sustainable finance equity-based financing energy economics agent-based modeling |
| status_str | publishedVersion |
| title | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments |
| title_full | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments |
| title_fullStr | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments |
| title_full_unstemmed | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments |
| title_short | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments |
| title_sort | Sustainable Financing for Sustainable Development: Agent-Based Modeling of Alternative Financing Models for Clean Energy Investments |
| topic | Engineering Environmental engineering Human society Political science sustainable economics sustainable finance equity-based financing energy economics agent-based modeling |