A Comprehensive Cost–Benefit Evaluation Framework for Green Finance Mechanisms in Supporting Renewable Energy Transition Projects
Keywords:
Green finance, renewable energy transition, cost–benefit analysis, climate financeAbstract
The acceleration of renewable energy transitions requires substantial capital mobilization mechanisms that can effectively balance environmental, economic, and institutional constraints. Green finance has emerged as a central enabler of sustainable investment flows, yet its effectiveness remains uneven due to fragmented evaluation frameworks and inconsistent cost–benefit assessment methodologies. This study develops a comprehensive cost–benefit evaluation framework for green finance mechanisms supporting renewable energy transition projects. The framework integrates financial efficiency metrics, environmental externality valuation, lifecycle cost assessment, and policy-driven incentive structures into a unified analytical model.
Methodologically, the study synthesizes comparative insights from prior empirical and theoretical literature on green finance, climate finance effectiveness, and lifecycle energy economics. The framework builds on structured cost–benefit logic applied in renewable energy systems, particularly offshore wind energy deployment economics (Snyder & Kaiser, 2009; Nian et al., 2019), while integrating governance and regulatory dimensions of green transformation (Chen et al., 2023). The model further incorporates multi-dimensional financial instruments such as green bonds and public–private partnerships to evaluate capital efficiency and project scalability (Zhang, 2024).
Findings suggest that green finance effectiveness is strongly dependent on alignment between regulatory frameworks, lifecycle cost structures, and institutional investment incentives. The proposed model demonstrates that projects with integrated policy-finance coordination yield significantly higher net social returns compared to isolated financing approaches. The study contributes a structured decision-support system for policymakers and investors to optimize renewable energy funding allocation.
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Copyright (c) 2026 Dr. Saeed Moradi, Dr. Elham Khosravi (Author)
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