Student Number

15196

Degree

Master of Science in Islamic Banking & Finance

Department

Department of Finance

Faculty/ School

Faculty of Business Administration (FBA)

Date of Award

Fall 2021

Advisor

Dr. Ashraf Khan, Assistant Professor, Department of Finance, Institute of Business Administration, Karachi

Second Advisor

Dr. Irum Saba, Assistant Professor, Department of Finance, Institute of Business Administration, Karachi

Project Type

MS IBF Thesis

Access Type

Restricted Access

Pages

xviii, 71

Abstract

Green finance has shown the importance of being socially responsible and supporting the flow of financial instruments to develop sustainable and ethical business models, environmental and social projects. The growing trends raised the need for a quantitative study to address scientific performance analysis and intellectual development. We have divided our study mainly into two parts. The first part aims to cater a quantitative statistics and thorough bibliometric review of 150 articles for the period of 1981-2019 with the addition of 130 recent publications from 2020-2021 from the database of Web of Science. We applied an advance hybrid bibliometric approach of citation analysis that includes a flavour of both qualitative and quantitative designs.

This is done to understand the vital intellectual and influential constitution of green and socially responsible finance. Further, in the second part, we propose two Islamic finance models for waste management to mitigate the bad effects of climate change in a sharia-compliant manner. The results of the first part of the study identify the leading academic authors, journals, institutions, and countries with relation to green and socially responsible finance literature. We also propose three research themes in this field, 1) Overview of Green Finance; perception, and investor’s behavior, 2) Analysis of performance models, and growth factors of Green Finance, 3) Pricing Mechanism of SRI. Through these themes, we identified the existing research gaps within green finance literature and laid down 30 research agendas for future research. This will guide the researchers and academicians to explore it further and hold a solid quantitative base concerning the scientific progress of green finance. In the second part, we have proposed two Shariah-compliant Islamic finance models i.e., Diminishing Musharakah and Ijarah financing models for waste management in developing countries like Pakistan to offer a shariah-compliant ethical solution for converting solid waste into energy, bio fuel, and cement.

This will help authorities to consider offering practical shariah-compliant solutions to investors. The second part of the study concluded that the Diminishing Musharakah and Ijarah Sukuk financing can be alternate financing options for setting waste management systems, financing technological advancements for effective pollution control, and for meeting sustainable development goals in a sharia-compliant manner by OIC countries.

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