Abstract
Malaysia’s allocation of about USD1 billion, for the green technology financing scheme (GTFS), was beset with low uptake rates. This chapter posits that information asymmetries, wherein the regulators, bankers and GTFS-based loan applicants had different perceptions regarding the objectives of GTFS, and the requirements for obtaining these loans, led to the poor uptake. These information asymmetries contributed to the submission of incomplete documentation and information sets by the GTFS-based loan applicants, which led to low bank approval rates. Pertinent information asymmetries are identified, and relevant recommendations are presented, for boosting the GTFS uptake rates, which will in turn promote the adoption of green technology in the Malaysian economy and other emerging economies that are contemplating similar financial incentives for promoting green economic growth.
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APEC (2014) considers that RM10 million is equivalent to approximately three million US dollars, reflecting the general currency exchange rates at the time that these policies were declared. Based on this exchange rate, the budgeted allocation of RM3.5 billion, for the Malaysian green technology scheme, amounts to approximately one billion US dollars.
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Acknowledgement
The authors thank the Malaysian Ministry of Science, Technology and Innovation for a large E-Science grant that financed this research.
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Sinnakkannu, J., Samudhram, A. (2018). Promoting Green Technology Financing: Political Will and Information Asymmetries. In: Thatcher, A., Yeow, P. (eds) Ergonomics and Human Factors for a Sustainable Future. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-8072-2_13
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DOI: https://doi.org/10.1007/978-981-10-8072-2_13
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