Investing in Sustainable Infrastructure: New Directions for International Business Research

12 Pages Posted: 4 Jan 2022

See all articles by Sarianna M. Lundan

Sarianna M. Lundan

University of Bremen

Gunnar Leymann

University of Bremen - Faculty of Business Studies and Economics

Date Written: December 21, 2021

Abstract

In the global economy today, there is both a supply-side push of large amounts of stimulus funding being directed at infrastructure investment and a corresponding demand-pull, with nearly all of the countries in the world committing themselves to he Sustainable Development Goals and to the transition to a net zero economy. In the energy sector, the pressure to rapidly increase the proportion of renewable capacity, primarily wind and solar, has created unprecedented opportunities for investment, but it also raises concerns about the availability of project finance investors to execute all of these projects, particularly in developing countries. We discuss three areas of future research that address the causes and remedies for such capacity constraints, namely, the structuring of project finance investment, demonstration effects, and the role of technological complementarities and leapfrogging in developing countries.

Keywords: infrastructure investment; international project finance; renewable energy; capacity constraints; leapfrogging

JEL Classification: F23, H54, Q42, Q48

Suggested Citation

Lundan, Sarianna M. and Leymann, Gunnar, Investing in Sustainable Infrastructure: New Directions for International Business Research (December 21, 2021). Transnational Corporations Journal, Vol. 28, No. 3, 2021, Available at SSRN: https://ssrn.com/abstract=3991141

Sarianna M. Lundan (Contact Author)

University of Bremen ( email )

FB 7
Hochschulring 4
Bremen, D-28359
Germany

HOME PAGE: http://www.img.uni-bremen.de

Gunnar Leymann

University of Bremen - Faculty of Business Studies and Economics ( email )

Bremen, D-28359
Germany

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