The capital cost problem with attracting foreign capital into climate change mitigation projects
urbanomics.substack.com
Arguably the biggest problem in attracting foreign capital to finance infrastructure and climate change mitigation projects in developing countries is the large macro (country) risk that translates into prohibitive capital costs. The interest rate premia is much higher than would be expected based on any theoretical model or assessment made on the basis of economic fundamentals.
The capital cost problem with attracting foreign capital into climate change mitigation projects
The capital cost problem with attracting…
The capital cost problem with attracting foreign capital into climate change mitigation projects
Arguably the biggest problem in attracting foreign capital to finance infrastructure and climate change mitigation projects in developing countries is the large macro (country) risk that translates into prohibitive capital costs. The interest rate premia is much higher than would be expected based on any theoretical model or assessment made on the basis of economic fundamentals.