Crowdfunding for renewable energy in emerging markets: an exploratory study.

Crowdfunding has emerged as a viable tool in the alternative finance industry to complement financing for projects where government and bank investments have been unable to cover including in renewable energy. Nevertheless, the crowdfunding literature on developing countries, especially in Africa, remains scanty and little is known about its potential to contribute substantially to the financing of renewable energy from an investment perspective rather than a philanthropic one. In this paper, we close the loop around the mechanics and dynamics of crowdfunding by investigating crowd perceptions in a developing country context using Ghana as a case study. We employ integrative literature review anchored on collective action, social proof, network and signalling theory, backed with critical focus groups interviews of household retail investors to distil the key issues and concerns relating to crowdfunding for renewables. We then propose a conceptual framework based on the findings. Our findings demonstrate that an unfair playing field exists on financial returns between renewable energy and investment alternatives available to the crowd. Hence, the crowdfunding landscape will require deliberate design to improve attractiveness around non-financial attributes such as developer/fundraiser reputation and project viability to further strengthen project economics

SME bonds in European countries as a new approach to financing

Nowadays a lot of new financial instruments for SMEs innovation projects are getting more popular in the business environment. A great number of them are traditional like credit loans at the same time we can observe the appearance of innovative ones. Variable set of financial instruments generalized on fig.1. This classification is giving by Organiztion of Economic Cooperation and Development ( OECD). As we can see from the fig.1 the classification is based on risk approach. For further research it is needed to сlarify these definitions. Firstly, asset based finance is the method of assigning structured turnaround capital and term loans, disbursement of debit portfolio, stocks, machines, funds, and / or real estate. This type of finding is suitable for SMEs beginners, refinancing existing loans, growth financing, mergers and acquisitions

Crowdfunding renewable energy investments: : Investor perceptions and decision-making factors in an emerging market

Bridget Okyerebea Menyeh: Writing – review & editing, Writing – original draft, Validation, Methodology, Formal analysis, Data curation, Conceptualization. Theophilus Acheampong: Writing – original draft, Formal analysis, Conceptualization.Peer reviewe

How Entrepreneurs Can Crowdfund Renewable Energy Projects

This Article explains how the entrepreneurial efforts and the upcoming changes in crowdfunding law will allow for more successful renewable energy projects in the United States. Part II examines the renewable energy market, its relevance, and the United States\u27 transition from traditional non-renewable energy production to renewable energy production. Part III covers the general methods of energy financing from both public and private sources and how they have been utilized in typical energy financing structures. Part IV explains how an entrepreneur, utilizing the new rules on crowdfunding, can address the existing deficiencies in financing renewable energy projects. Part V explores the current federal legal status of crowdfunding. Part VI highlights some alternative methods other than crowdfunding to fund renewable energy projects. Finally, Part VII concludes the discussion

Beyond Tax Credits: Smarter Tax Policy for a Cleaner, More Democratic Energy Future

Solar, wind, and other renewable energy technologies have the potential to mitigate climate change, secure America\u27s energy independence, and create millions of green jobs. In the absence of a price on carbon emissions, however, these long-term benefits will not be realized without near-term policy support for renewable energy. This Article assesses the efficiency of federal tax incentives for renewables and proposes policy reform to promote renewable energy more cost-effectively through capital markets and crowdfunding. Federal support for renewable energy today comes primarily in the form of accelerated depreciation and, critically, tax credits. Empirical evidence reveals that only a fraction of the subsidy value of tax credits may actually go to funding new renewable power projects. Why are tax credits for renewables so inefficient? And where do the remaining tax dollars go? Qualitative analysis suggests that the answer to both questions hinges on the mismatch between the profitability requirements of tax credits and the revenue profile of renewable energy projects. The value of tax credits lies in their capacity to reduce tax liability and lower tax bills. Most renewable power projects, however, require ten years or more to recover their up-front capital expenditures before they begin to generate taxable profits and, hence, tax liability to reduce. Bringing in investors with tax liability from other sources to monetize a project\u27s tax credits provides only partial relief. Such tax equity investment drives up a project\u27s financing charges and transaction costs, limits investment liquidity, and restricts growth in the renewable energy marketplace. Federal policymakers should give renewables access to master limited partnerships (MLPs) and real estate investment trusts (REITs)- two tax-privileged investment structures with a proven track record of promoting oil, gas, and other conventional energy infrastructure. Merging the tax benefits of a partnership with the fundraising advantages of a corporation, MLPs and REITs could significantly reduce the cost of capital for renewable energy projects, broaden their investor appeal, and move renewables closer to subsidy independence. Most importantly, MLPs and REITs have the potential to deliver these and more benefits to renewable energy at considerably lower cost to taxpayers than the current regime of tax credits

Beyond Tax Credits: Smarter Tax Policy for a Cleaner, More Democratic Energy Future

Solar, wind, and other renewable energy technologies have the potential to mitigate climate change, secure America\u27s energy independence, and create millions of green jobs. In the absence of a price on carbon emissions, however, these long-term benefits will not be realized without near-term policy support for renewable energy. This Article assesses the efficiency of federal tax incentives for renewables and proposes policy reform to promote renewable energy more cost-effectively through capital markets and crowdfunding. Federal support for renewable energy today comes primarily in the form of accelerated depreciation and, critically, tax credits. Empirical evidence reveals that only a fraction of the subsidy value of tax credits may actually go to funding new renewable power projects. Why are tax credits for renewables so inefficient? And where do the remaining tax dollars go? Qualitative analysis suggests that the answer to both questions hinges on the mismatch between the profitability requirements of tax credits and the revenue profile of renewable energy projects. The value of tax credits lies in their capacity to reduce tax liability and lower tax bills. Most renewable power projects, however, require ten years or more to recover their up-front capital expenditures before they begin to generate taxable profits and, hence, tax liability to reduce. Bringing in investors with tax liability from other sources to monetize a project\u27s tax credits provides only partial relief. Such tax equity investment drives up a project\u27s financing charges and transaction costs, limits investment liquidity, and restricts growth in the renewable energy marketplace. Federal policymakers should give renewables access to master limited partnerships (MLPs) and real estate investment trusts (REITs)- two tax-privileged investment structures with a proven track record of promoting oil, gas, and other conventional energy infrastructure. Merging the tax benefits of a partnership with the fundraising advantages of a corporation, MLPs and REITs could significantly reduce the cost of capital for renewable energy projects, broaden their investor appeal, and move renewables closer to subsidy independence. Most importantly, MLPs and REITs have the potential to deliver these and more benefits to renewable energy at considerably lower cost to taxpayers than the current regime of tax credits

The Use of Crowdfunding by Environmental Entrepreneurs: Is it all about cash?

This chapter explores the engagement of environmental ventures in crowdfunding and seeks to address the nested questions of (a) why such ventures choose to engage in crowdfunding and (b) what the unique benefits of crowdfunding are to ventures operating in the renewables space. To address these questions, we draw on a single case study of a French company, tasked with producing renewable energy in the West of France

New quality of financial institutions and business management

Economic processes in the world are characterized by a high level of dynamism, change and innovative approaches to addressing key issues in nowadays. In a context of globalization and European integration of Ukraine into a high-tech competitive environment in order to financing innovative projects, it is necessary to use Blockchain technology as an effective tool for digital economy. Purpose of scientific research is to find out key priorities and functionalities of Blockchain’s application for solving business and government tasks. The object of scientific research is the latest financial technology Blockchain and a system of cult-technologies: crowdsourcing, crowdfunding, crowdinvesting. Methodology. In the process of re-search, the following methods are used: generalization – in studying the nature, pre-conditions and principles of Blockchain technologies; formalization – when compar-ing characteristics of the latest forms of financing, such as crowdsourcing, crowd-funding, crowdinvesting. In the course of scientific research, key qualitative charac-teristics of digital economy are described and the dominant components of its devel-opment are investigated. The result of the article. The priorities, new principles of business management and possibilities of Blockchain technology as an effective digi-tal economy tool for solving business and government tasks are revealed. Future pro-spects from the implementation of crowd-technologies as an effective management tool in progress for solving the problems of innovative business are substantiated. Interconnection in the latest financial institution of creative initiatives realization is presented. The comparative analysis of management of new institutes of innovative development for Ukrainian economy in the course of doing business is carried out. The result of the research is presentation of the relationship in the latest financial in-stitution implementing creative initiatives and a comparative analysis of new insti-tutes of innovative development in the sphere of finance for the Ukrainian economy. Practical implications. The components of digital economy identified by the authors in the article are accelerators of the socio-economic life of Ukrainian society in the modern world and are capable of rapidly increasing Ukraine’s GDP. The described new forms of financing of Ukrainian start-ups (crowdsourcing, crowdfunding, crowdsourcing) are today quite interesting and effective tool for solving business problems in the financial, economic, innovative, marketing and marketing spheres. Value/originality. Blockchain technology, as an effective tool for Ukraine’s digital economy, is able to address the challenges of business and government, uncover the relationship between crowdsourcing, crowdfunding, crowdsourcing, and explain the content of innovative financial institutions for Ukraine’s economy