The aim of the research project is to assess the relationship between the quality of public management and the use of “green financing” instruments.
The reason for our research is the growing concern of the scientific world to stop negative climate changes, which are causing the deteriorating quality of life of nations, loss of material and non-material resources. In our opinion, it seems necessary to develop such financial instruments that can support the reduction of the negative effects of climate change. Environmental challenges are taken up by both states and private entities. They are looking for more ecological technological solutions that will help reduce global warming. In order to achieve the ecological goal expressed by the threshold of 2 degrees Celsius for global warming, it is estimated that almost USD 6.9 billion should be spent on improving infrastructure over the next 15 years (OECD, 2017a).
The subject of the research is to verify the relationship between the quality of public management and the value and profitability of the above-mentioned types of bonds in the world. In addition, we will systematically review impact investing instruments such as social impact bonds, green bonds and sustainability bonds in the world. We will indicate the potential of this market and the role of governments in the development of financial instruments that increase social well-being, including environmental well-being. An assessment of the relationship between the quality of governance and the value and profitability of green bonds can contribute to the further development of green financing instruments, their better adjustment to the specifics of individual countries and building higher social well-being. In addition, it can be a justification for specific government interventions, the use of subsidy/grants tools in order to properly stimulate the development of the green economy. Since the environmental goal is global in nature, verification of the planned relationship can also direct support to the appropriate areas in the area of raising the level of public governance, within the NPG.
The research stages include: construction of databases of the WGI index, green bond issues; literature studies in the area of impact investing and the systematics of green bonds, social impact bonds, sustainability bonds instruments in the world; statistical analyses; scientific discussion based on the obtained results and previous research in the discussed area, a list of implications of the development of the bond market with a broadly understood social „impact”.
The aim of the research project is to verify the relationship between the quality of public governance and the value and profitability of green bond issues worldwide. An additional aim of the project is to systematize financial instruments of impact investing such as social impact bonds, green bonds and sustainable bonds and to indicate their importance in the development of financial markets worldwide.