Innovative Financing Mechanisms Research Articles

Adoption rationales and effects of off-grid renewable energy access for African youth: A case study from Tanzania

Inclusive energy access remains elusive globally. Centrally planned energy infrastructures tend to neglect marginalised and disparate populations while upfront costs make it rare for lower-income actors to adopt off-grid renewable energy. This article identifies one emerging response by low-income actors to secure access to through solar photovoltaic energy and an innovative micro-finance enterprise. The AMP framework (awareness, motivation and pathways) is used to explore how and why Tanzanian youths are adopting solar photovoltaic energy and with what effects. Qualitative interviews and field observations indicate awareness and motivational factors of technology, cost, warranty and service influence initial adoption decisions. Nodes of off-grid renewable energy associate with co-benefits of poverty reduction, low-carbon energy access and diversification away from livelihoods that are highly vulnerable to climate change. Framed as a ‘pathway’, the innovative financing mechanism in this case presents an inclusive model of energy access. These findings extend the AMP framework to include consideration of obstacles within the notion of pathways. The case highlights a potential model for energy access and emerging nodes of decentralised and distributed energy modalities, that are potentially more climate resilient, as low-income actors seek to secure access.

Formation of the “Green Economy” in the Innovative Model of Sustainable Ukraine’s Development

The purpose of the study- is to substantiate the problems and prospects of forming a "green" economy and a way to implement sustainable development at the national level. Regional and global levels in the long run. The active growth of "green" enterprises, the introduction of innovative technologies and the reduction of waste and harmful emissions in various sectors of Ukraine's economy, the transition to energy-saving technologies and biofuels and "greening" of agriculture promise to ensure the country's energy security. This allows for increased incomes and formal employment in these sectors of the economy in the short and long term, while providing more environmental, economic and social benefits, which in general leads to a higher level of well-being of the population and the country. At the same time, although the transition to a "green" economy will require large-scale investments, these investments can be mobilized through sound government policies and innovative financing mechanisms.

Assessment of the Affordability of Out-of-Pocket Payments among Some Selected People Living with HIV in Kano, Nigeria

Introduction: With an estimated 1.8 million People Living with HIV (PLHIV), Nigeria’s HIV response is still heavily donor dependent. However, with anticipated decline in donor funding for HIV/AIDS program as the country takes ownership of the program, understanding financing options for PLHIV is important. One of such financing options is affordability of out-of-pocket payments (OOP) for anti-retroviral drugs (ARV) by PLHIV. We assessed affordability of OOP payments for ARVs in Kano State, North-Western Nigeria. Methods: Four Hundred and sixty-nine PLHIV receiving donor-supported-free ARV in Kano, North Western Nigeria were systematically selected and interviewed during routine clinic visits. Affordability for ARV was assessed by a combination of variables including willingness and financial means to incur extra expense for full dose of ARV based on landing and distribution cost of 8.3 USD (about 3,000 NGN) per month dose. Results: Four hundred and sixty-nine respondents were interviewed. Of those, 72 (15.4%, 95% CI: [13.2 - 19.7]) can afford ARV OOP on monthly base. The proportion of males able to pay 3,000 NGN (8.3 USD) or more OOP for ARVs was not different from that of women (15.5% versus 15.2%). Attending school, education level, employment, monthly income and wealth have all been found to be associated with willingness and ability to pay for monthly dose of ARV OOP (p < 0.0001). Conclusion/recommendation: Majority of PLHIV in Kano State may not afford ARV OOP in the event of withdrawal of supports by international donors. Innovative sustainable financing mechanisms from domestic resources are needed for HIV program sustainability.

Commodity-linked bonds as an innovative financing instrument for African countries to build back better

&lt;abstract&gt; &lt;p&gt;Commodity-linked bond, a type of state contingent claims, presents an innovative tool for African countries to mobilize resources on the international capital markets. Given their colossal financing needs, which has been worsened by the COVID-19 pandemic, African countries need to put in place innovative financing mechanisms to support their development frameworks for building back better. The issuing of this type of bond could provide an opportunity for commodity-producing African countries to hedge against fluctuations in their export earnings. The results show that the value of a commodity-linked bond increases as the price of the commodity indexed to the bond rises, suggesting that African countries should issue debt contracts that are tied to their export commodities so that their debt declines with plummeting export prices (or export revenues). A simple portfolio rule derived suggests that countries should issue more commodity-linked bonds than conventional debt if the variance of the portfolio is greater than twice the spread between the expected total return of the conventional debt and the commodity-linked bond. This rule supports the view that African countries' debt-service payments, for debt issued in the form of commodity-linked bonds, would decline whenever the price of their export commodities decline thus lightening their debt load.&lt;/p&gt; &lt;/abstract&gt;

Strengthening research capacity in LMICs to address the global NCD burden

ABSTRACT The burden of noncommunicable diseases (NCDs) continues to rise across the globe, and the risk of dying prematurely from an NCD in a low- and middle-income country (LMIC) is almost double that in a high-income country. Confronting this crisis requires a critical mass of scientists who are well versed in regional health problems and understand the cultural, social, economic, and political contexts that influence the effectiveness of interventions to address NCDs. Investing in research capacity strengthening in LMICs is critical to effectively combating disease, and local researchers are best poised to address the health challenges in their home countries given their understanding of the unique culture and context in which they are working. The Fogarty International Center of the U.S. National Institutes of Health has a set of programs focused on building individual and institutional NCD research capacity in LMICs. The Programs provide models for sustainable scientific research capacity strengthening, innovative funding mechanisms and partnership-building approaches. Investing in the training and scientific capacity of LMIC individuals and institutions not only helps foster a research culture and solidify local ownership of research, but it also ensures that the most appropriate solutions are developed, increasing the likelihood that those solutions will sustain over time. In addition, the Programs’ investigators have advanced the science across a range of NCDs and associated risk factors. This article describes key lessons and compelling cases from the Programs that can be harnessed by other health researchers and funders to further the global response to the NCD burden.

Opportunities and Challenges for Innovative Financing Mechanisms for Climate Change Adaptation and Mitigation, 2021-2050

Sustainable finance is essential for the implementation of adaptation and mitigation policies on natural sources and climate change. However, global and domestic finance for sustainable natural resources and forest management has been scared and unable to meet the practical needs for the last decades. Identifying innovative financing mechanism for sustainable natural resources management and climate adaptation and mitigation has been considered by globally communities as well as Vietnamese government as an important priority. This paper analyses new and innovative financing mechanisms for 2021- 2050, that are being considered and developed by a large number of countries, discusses opportunities and constraints for translating these mechanisms to the ground, and proposes policy recommendations for Vietnam to better access to these new funding sources.

A Review of Funding Mechanisms for US Floodplain Buyouts

Increases in extreme weather events have caused extensive flooding across the United States. In response, federal, state, and local governments have broadened their flood mitigation strategies to include acquisition and demolition of flood-damaged homes (“buyouts”). Little work has documented or analyzed the range of strategies for funding buyouts. Federal programs provide the bulk of funding, but these programs are often slow. Also, state and local governments struggle to meet cost-match requirements. We present and analyze a nationwide census of buyout funding programs (n = 34), which draw on five primary funding mechanisms. We find that state and local governments are using a range of traditional and innovative financial mechanisms, including municipal/green bonds, revolving loan funds, local option sales taxes, and stormwater utility fees, as viable tools for funding buyouts. These tools may promote more autonomy from federal government mitigation programs, and ultimately, faster buyout processes.

Innovation in Financing Energy‐Efficient and Renewable Energy Upgrades: An Evaluation of Property Assessed Clean Energy for California Residences

ObjectiveWe examine whether Property Assessed Clean Energy (PACE) programs, an innovative financing mechanism using municipal bonds to finance the up‐front cost of household energy conservation projects, reduced conventional energy purchases by residential customers and increased energy generated through residential solar panel and fuel cell installations.MethodsUsing data on municipal bond issuances, electricity and natural gas purchases, and self‐generated energy, we use a difference‐in‐differences design to estimate the effect of PACE bonds issued in California between 2009 and 2017 on purchases and self‐generation.ResultsWe find more residential energy self‐generation in counties with PACE programs. Results are inconclusive for conventional energy purchases, suggesting a possible rebound effect.ConclusionWhile innovative financing mechanisms facilitate access to otherwise prohibitively expensive technologies, governments must consider that behavioral responses may result in lower efficacy than desired and should consider pairing financing tools with instruments that concurrently promote reduced energy consumption.

A comprehensive review of the global development of initial coin offerings (ICOs) and their regulation

Initial coin offerings (ICOs) represent an innovative and new funding mechanism for new technology ventures. In our comprehensive review of the industry’s evolution, we show that despite its short history, there have been dramatic changes and shifts in the number of ICOs, the amount of money raised, the geographic distribution of ICOs, and their regulation. This dynamism calls into question current research practices and findings. We propose that scholars sort out and differentiate supply of vs. demand for ICO funding, taking geography and regulation into account with a global perspective.

Building Resilient Food Systems in Africa

Climate change constitutes a significant threat to food security and poverty reduction in Africa, and the food system is severely off target in meeting development goals. Policy response should focus on investing in agricultural public goods, scaling up digital solutions, and developing innovative finance mechanisms to enhance resilience.

Innovative financing mechanism for blue economy projects

Investments flowing into blue economy projects are estimated to be much lesser than the requirements, for achieving the targets set out in the UN Sustainable Development Goals. Blue economy projects are typically financed through conventional means of public and development finance. However, the nature and characteristics of blue economy projects transcend the need to extend beyond the conventional financing options of multilateral/bilateral aid. The objective of this article is to assess if the existing blue economy initiatives are adequate to the sectoral investment needs and to develop contours of a framework that could accelerate the blue economy investments. The research finds that the current initiatives such as blue bonds are relatively small and accelerating investments requires access to additional financing instruments and a transformative change in participating stakeholders. Using a Theory of Change approach, contours of a framework that pools in low-cost funds from a diverse set of investors to be deployed for either public sector promoted large impact projects or individual blue economy projects through market-based instruments are suggested. The findings contribute to the ongoing debate on how to improve the financial capability of various blue economy stakeholders and enable them to configure more sustainable financing mechanisms.

COVID-19 specialized diabetes clinic model for excellence in diabetes care: scientific perspective

While diabetes centers are well established by the Ministry of Health, there is no separate specialized diabetes clinics for COVID-19 patients (SDCs). There are several clinical diabetes centers throughout the Kingdom of Saudi Arabia, several of which have been developed through philanthropy funding; nevertheless, it is not obvious what distinguishes SDCs from a therapeutic viewpoint and what the potential would be for such centers. Through this context, we suggest a structure to direct the progress of SDCs. Defining protocols for wider adoption of SDCs as a means to enhance public safety and COVID-19 patient care efficiency (including consistency and satisfaction) and minimize health care expenses becomes increasingly essential when moving towards value-based sales and reimbursements away from service charges. It is wise to introduce innovative financial mechanisms to pay for diabetes that cannot be covered by fiscally limited private and university medical centers. We foresee potential clinical SDCs to be made up of a well-defined framework and six areas or foundations that act as basic guiding principles for the advancement of diabetes treatment skills that can be easily illustrated by stakeholders, including insurance facilities, consumers, payers and government departments.

TERRITORIAL ANALYSIS, DEVELOPMENT AND TECHNICAL ASSISTANCE AND RURAL EXTENSION FOR FAMILY FARMING

In the last decade, significant changes in the national scenario have altered the productive and social dynamics of Family Agriculture (FA) and public policies for this public, such as Technical Assistance and Rural Extension (TARE), can play an important role in its strengthening. This study carried out a territorial analysis of the dynamics of access to TARE by FA in the last decade, through multiple data sources. The results show that the structuring of a new and efficient national TARE system must rely on: (i) state action, but not with the claim that they are the only source of such services; (ii) expansion of the performance of municipalities, where the participation of city halls may contribute to TARE becoming a quality service; (iii) continuous and quality training for extension workers; iv) creation of innovative financing mechanisms; and (v) promoting the integration of research and extension.

Optimal Simulation of Three Peer to Peer (P2P) Business Models for Individual PV Prosumers in a Local Electricity Market Using Agent-Based Modelling

Solar photovoltaic (PV) is becoming one of the most significant renewable sources for positive energy district (PED) in Sweden. The lack of innovative business models and financing mechanisms are the main constraints for PV’s deployment installed in local communities. This paper therefore proposes a peer-to-peer (P2P) business model for 48 individual building prosumers with PV installed in a Swedish community. It considers energy use behaviour, electricity/financial flows, ownerships and trading rules in a local electricity market. Different local electricity markets are designed and studied using agent-based modelling technique, with different energy demands, cost–benefit schemes and financial hypotheses for an optimal evaluation. This paper provides an early insight into a vast research space, i.e., the operation of an energy system through the constrained interaction of its constituting agents. The agents (48 households) show varying abilities in exploiting the common PV resource, as they achieve very heterogeneous self-sufficiency levels (from ca. 15% to 30%). The lack of demand side management suggests that social and lifestyle differences generate huge impacts on the ability to be self-sufficient with a shared, limited PV resource. Despite the differences in self-sufficiency, the sheer energy amount obtained from the shared PV correlates mainly with annual cumulative demand.

Funding deficits of protected areas in Brazil

Protected areas (PAs) are the most effective public policy instruments to protect natural ecosystems and the services these ecosystems provide. Nevertheless, several PAs present a funding deficit because governments allocate fewer financial resources than those required to cover PA management costs. The variation in funding deficits within countries is not well documented because information about PA public investments and management costs are seldom available. We describe the variation in funding deficits across Brazilian federal PAs and propose a model that explains such variation by using PAs' characteristics and their zones of influence as predictors. We estimated that the 282 Brazilian federal PAs needed US$ 468 million to cover their management costs in 2016. However, the Brazilian government allocated only 15.5 % of these costs. Approximately 76.5 % of the PAs had funding deficits. Our model showed that: (1) funding deficit is negatively associated with PA age and the human development index but positively associated with PA size, (2) PAs in the Atlantic Forest and the Savannas and Drylands have lower funding deficits than PAs in the Amazon, and (3) PAs in the Atlantic Forest have lower funding deficits than PAs in the Savannas and Drylands. We found that the proportion of PAs with a funding deficit in Brazil is high and is comparable to the high percentage of PAs (75 %–100 %) with a funding deficit found in sub-Saharan Africa. Moreover, there is evidence that the total annual funding deficit in the Brazilian PAs increased in the last decade. New policies, public-private partnerships, and innovative funding mechanisms need to be set to close the large funding gap in the Brazilian federal PA system.

An innovative executive and financial mechanism for energy conservation in new and existing buildings in Iran

One of the most effective measures for building energy conservation is the implementation of energy codes. The building energy codes introduction in Iran started two decades after the first oil crisis in the early 1970s by establishing the building energy conservation regulation called Issue 19. Nowadays, due to some financial and executive barriers, the implementation of Issue 19 is faced with some difficulties. The most critical obstacle is the low price of energy carriers, which lead to high subsidies of energy and the reluctance of the building owners to implement the regulation. The main goal of this paper is the introduction of an innovative financial and executive mechanism for implementation of Issue 19 in both new and existing buildings to achieve sustainability and resiliency. The cost–benefit analysis approach, along with SWOT technique and a comprehensive review of global experiences, was applied to introduce proper financial and executive mechanisms to determine the economic and social aspects of energy conservation programs for implementation of energy saving in buildings. The presented mechanism indicates the role of all different related parties, such as the government, banking system, energy-saving companies, building owners, and municipality, to achieve this goal. The results indicated that with a cost of $10 million, the benefits of implementation of the introduced mechanism are over 5.78 billion dollars.

Ensuring global access to COVID-19 vaccines

Ensuring global access to COVID-19 vaccines

Primary Care 2030: Creating an Enabling Ecosystem for Disruptive Primary Care Models to Achieve Universal Health Coverage in Low- and Middle-Income Countries.

Background:Forty years after Alma Ata, there is renewed commitment to strengthen primary health care as a foundation for achieving universal health coverage, but there is limited consensus on how to build strong primary health care systems to achieve these goals.Methods:We convened a diverse group of global stakeholders for a high-level dialogue on how to create an enabling ecosystem for disruptive primary care innovation. We focused our discussion on four themes: workforce innovation and strengthening; impactful use of data and technology; private sector engagement; and innovative financing mechanisms.Findings:Here, we present a summary of our convening’s proceedings, with specific recommendations for strengthening primary health care systems within each of these four domains.Conclusions:In the wake of the Astana Declaration, there is global consensus that high-quality primary health care must be the foundation for universal health coverage. Significant disruptive innovation will be required to realize this goal. We offer our recommendations to the global community to catalyze further discourse and inform policy-making and program development on the path to Health for All by 2030.

A Comprehensive Review of the Global Development of Initial Coin Offerings (ICOs) and Their Regulation

Initial coin offerings (ICOs) represent an innovative and new funding mechanism for new technology ventures. In our comprehensive review of the industry’s evolution, we show that despite its short history, there have been dramatic changes and shifts in the number of ICOs, the amount of money raised, the geographic distribution of ICOs, and their regulation. This dynamism calls into question current research practices and findings. We propose that scholars sort out and differentiate supply of vs. demand for ICO funding, taking geography and regulation into account with a global perspective.

A graduate level course on economic metrics and innovative finance mechanisms for wind

A graduate level course on economic metrics and innovative finance mechanisms for has been developed. Topics include non-traditional financing structures for project development and the application of economic metrics to investment decision making. The development of this course was motivated by recent surveys and through consultation with wind energy professionals. Recent surveys have indicated that highly qualified persons entering renewable energy fields are lacking knowledge of the technical, economic, and policy-connected aspects of their work. Synthesis of these discussions, which have guided the development of course content, highlighted that an understanding of market policy and project economics would greatly enhance the efficacy of energy technical professionals. The purpose of this course is to develop holistically equipped wind energy professionals who can intelligently engage with business and finance professionals in their field. Both live instruction and online versions of this course intend to provide this knowledge through application-based lectures and case studies to set graduates of this course apart from their peers. Course delivery, topics, learning outcomes, and evaluation methods are provided.