Research from University of South Africa Provide New Insights into Risk Management (An Exposition of the Gap between Public Sector and Private Sector Participation in Green Finance): Insurance – Risk Management

2024 JUL 05 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on risk management are discussed in a new report. According to news reporting from Pretoria, South Africa, by NewsRx journalists, research stated, “Greening the environment cannot be achieved satisfactorily, considering that the private sector lags behind the public sector in participation levels.”

Funders for this research include University of South Africa.

The news editors obtained a quote from the research from University of South Africa: “The purpose of this study was to determine the reasons behind the gap in green finance between the two sectors using numerically derived outcomes. Six-year data in the form of total shareholder returns, comprising capital gains and dividends paid from the largest banks in China, the USA, and Europe involved in financing fossil fuels, were extracted from Yahoo.com finance and Macrotrends public forums. Equity premiums were calculated from the total shareholder returns and risk-free rates. A 95% confidence interval was established to determine the lower and upper limits of the equity premiums. The resulting upper limits were used to project premiums that could attract the private sector by 2030. Equity premiums averaged 2.73%, 9.73%, and 4.31% for China, the USA, and Europe, respectively, indicating the substantial task in the USA of attracting the private sector compared to Europe and China.”

According to the news editors, the research concluded: “The projections of total shareholder returns showed the same patterns in equity premiums among China, the United States (USA), and Europe. To bridge the gap, the significant need for economic benefits for the private sector should ideally be addressed through green bonds, tailored to green financing projects that are earmarked for revenue generation.”

For more information on this research see: An Exposition of the Gap between Public Sector and Private Sector Participation in Green Finance. Risks, 2024,12(7). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks12070103.

Our news journalists report that additional information may be obtained by contacting Chekani Nkwaira, Sustainable Living, Graduate School of Business Leadership (SBL), University of South Africa, P.O. Box 392, Pretoria 0002, South Africa. Additional authors for this research include Huibrecht Margaretha Van der Poll.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the author of this research: Huibrecht Margaretha Van der Poll (http://orcid.org/0000-0002-0887-4138).

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