A Primer on Green Finance: From Wishful Thinking to Marginal Impact

Research output: Contribution to journalResearch articleContributedpeer-review



We raise some critical points against a naïve interpretation of "green finance"products and strategies. These critical insights are the background against which we take a closer look at instruments and policies that might allow green finance to become more impactful. In particular, we focus on the role of a taxonomy and investor activism. We also describe the interaction of government policies with green finance practice - an aspect, which has been mostly neglected in policy debates but needs to be taken into account. Finally, the special case of green government bonds is discussed.


Original languageEnglish
Article number74
Pages (from-to)1-19
Number of pages19
JournalReview of Economics
Issue number1
Publication statusPublished - 1 Apr 2023

External IDs

Scopus 85153958256
ORCID /0000-0002-5071-7849/work/142250541


Research priority areas of TU Dresden

DFG Classification of Subject Areas according to Review Boards

Sustainable Development Goals


  • climate policy, ESG goals, green finance