A3 Book section, Chapters in research books
Financial system in steering the economy towards planetary well-being (2024)
Heimonen, K., Junttila, J., & Lehkonen, H. (2024). Financial system in steering the economy towards planetary well-being. In M. Elo, J. Hytönen, S. Karkulehto, T. Kortetmäki, J. S. Kotiaho, M. Puurtinen, & M. Salo (Eds.), Interdisciplinary Perspectives on Planetary Well-Being (pp. 216-230). Routledge. https://doi.org/10.4324/9781003334002-22
JYU authors or editors
Publication details
All authors or editors: Heimonen, Kari; Junttila, Juha; Lehkonen, Heikki
Parent publication: Interdisciplinary Perspectives on Planetary Well-Being
Parent publication editors: Elo, Merja; Hytönen, Jonne; Karkulehto, Sanna; Kortetmäki, Teea; Kotiaho, Janne S.; Puurtinen, Mikael; Salo, Miikka
ISBN: 978-1-032-36828-3
eISBN: 978-1-003-33400-2
Publication year: 2024
Publication date: 15/06/2023
Pages range: 216-230
Number of pages in the book: 270
Publisher: Routledge
Place of Publication: Abingdon
Publication country: United Kingdom
Publication language: English
DOI: https://doi.org/10.4324/9781003334002-22
Publication open access: Openly available
Publication channel open access: Open Access channel
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/88236
Abstract
This chapter discusses the possible roles that financial system may play in steering economic production towards planetary well-being. The costs associated with using natural resources are seldom equal to the actual environmental costs incurred. The present chapter proposes linking Sir Partha Dasgupta’s Impact Equation and the standard asset pricing framework and discusses the roles that financial institutions and central banks as well as debt and equity funding play in supporting production that preserve planetary well-being via the incentives of those in need for and those willing to supply funding. It is proposed that the increasing costs of capital and the financial exclusion of non-environmentally friendly investments will tilt financial flows towards less harmful production, thereby promoting planetary well-being. The chapter highlights the important roles that the public sector and central bank activities play in addressing the incompatibility between economic development and planetary well-being through the financial intermediation system.
Keywords: international economics; economic systems; green transition; economic policy; economic control; central banks; financing systems
Free keywords: planetary well-being
Contributing organizations
Related projects
- (RITARI) OP Research Foundation's Research Group on Financial Institutions
- Heimonen, Kari
- OP Group Research Foundation
Ministry reporting: Yes
VIRTA submission year: 2024
Preliminary JUFO rating: 3
- School of Wellbeing (University of Jyväskylä JYU) JYU.Well
- Economics (School of Business and Economics JSBE) KTT
- Policy-Relevant Economics and Competitiveness of Economy (focus area) (School of Business and Economics JSBE) ; Formerly Policy-Relevant Economics
- School of Resource Wisdom (University of Jyväskylä JYU) JYU.Wisdom
Parent publication with JYU authors: