Fig. 1: The climate investment trap at the macroeconomic level.
From: Higher cost of finance exacerbates a climate investment trap in developing economies
The figure shows the set of self-reinforcing mechanisms and related links occurring in developing economies characterised by the high cost of capital. The strength of these links is strongly linked to local conditions implying that the set of self-reinforcing mechanism could be exacerbated (or less relevant) in some economies.
