EMDV8008 Research Proposal

Introduction

Green finance refers to a financial device that consists of debt, equity, grant, sales, purchase, or tool for managing risk in operations of organizations. Example of green finance comprise of investment guarantee, commodity insurance, insurance product, derivative rate of interest or credit. The credit is mostly issued under contract of an organization, individual, project, facility, or private agency or public with environment that are real, verified, and additional to business operations as usual (Mathews and Kidney 2012, p. 339). The green finance always affects operations of different organizations in terms of increasing or decreasing rate of their productions. Therefore, primary objective of this paper is to propose a research work on impacts of green finance on cost reduction between two companies namely Abu Dhabi National Oil Corporation together with Abu Dhabi Gas Industry Limited in UAE.

Literature review 

Green finance provide lasting loan that plays a significant role in improving service delivery and development of corporations around UAE. Furthermore, green finance has made Abu Dhabi National Oil Company to actively integrate sustainable principles in their operations to help in reducing operating costs (Gueldry and Liang 2016, p. 221). It has enabled the management of oil industry to focus on reducing money that they use for management by ensuring that every action that they take focus on saving amount of energy that they use in achieving their business goals. Green finance has helped Gas Industry to reduce cost of operations and management by improving ideas of innovation and production of new products to its clients. Green finance is not often quick in development stage for operations and not always commercially viable, making its technologies to be more expensive and riskier ventures. It helps in improving the advancement of companies such as Abu Dhabi National Oil Company by reducing the cost of capital through provision of debt or loans to improve its operations. Loans provided by green finance remain to be the most common source of finance that this corporation uses to up-front and improve ongoing project costs (Bracking 2015, p. 2341). Low-cost debt provided by green finance is essential in improving business operations of Abu Dhabi National Oil Company. It has also helped the oil and gas industry to grow in reaching new clients and markets within short duration making it compete with other companies around UAE markets. Additionally, it has helped Gas Industry Limited to strengthen different equity profile of projects because of the lower repayment priority of the financial device (Özev 2017, p. 1001). Green finance offers a hybrid of debt and finance, and it gives the lender to have the right to convert outstanding debt to equity that helps in reducing costs in operations of the bank.

Through green finance, Abu Dhabi National Oil Company has been able to reshape its economy as well as consolidate different state-owned organizations to cope with low prices of oil. Moreover, Green finance has helped Abu Dhabi State Oil Corporation to reduce its costs of management with operations by improving its composition of business portfolio (Hwang, Lee, and Müller 2017, p. 661). It has helped the company in regulating risks that do occur during operations making it less affected in the market. It has also helped the oil company to focus on development of sustainable operations such as reducing energy wastes and emissions making the company to use little funds on management (Bracking 2015, p. 295). The oil industry has been able to use the funding of Green finance to fund energy efficiency project through loans leading to cost reduction in energy usage as well for the people of UAE.

Research methodology including the research aim 

The target of this proposal paperwork following the methodology of research is to discover the impacts of green finance on cost reduction between the Abu Dhabi National Oil Corporation together with Industry Limited of Abu Dhabi Gas in UAE. It aims to offer general idea concerning the impacts of green finance on cost reduction among firms, as the number of companies that use green finance is growing in UAE (Djurovic, Cetkovic, Djurovic, and Jablan 2018, p. 1024). The examination targets at discovering some of the changes that green finance contain on cost reduction together with its resultant impact on operations of Abu Dhabi National Oil Corporation together with Gas Industry Limited of Abu Dhabi in UAE.

Survey questions 

This survey intend to give best answers to particular questions designed to scrutinize the influence of green finance on cost reduction among firms in UAE such as Abu Dhabi National Oil Corporation together with Gas Industry Limited of Abu Dhabi.

Primary question

What are the impacts of green finance on cost reduction?

Secondary questions

1. How does green finance impact cost reduction in operations of Abu Dhabi National Oil Company?
2. How does green finance affect cost reduction in Abu Dhabi Gas Industry Limited in UAE?

These imperative survey questions will eventually aid in giving best answer to the crucial objective of the mission. The subjects for this suggestion will be important in informing the motive basis for different companies in UAE to either permit or disallow use of green finance in the area (Leonard 2014, p. 217). Therefore, outcome from these survey inquiries will stay to be fundamental in offering well options for green finance that the company can follow appropriately to survive in the current operation market.

Research hypothesis 

In the Light of literature work this study aim to give answers on impacts of green finance on cost reduction in Abu Dhabi National Oil Corporation together with Gas Corporation Limited of Abu Dhabi in UAE. This research proposal will check the subsequent projected hypotheses to attain the best conclusion.

First Hypothesis

H₀: Green Finance influences the cost reduction.

H₁: Green Finance does not have any influence on cost reduction.

Hypothesis 2

H₀: Green Finance influences the cost reduction in Abu Dhabi Gas Industry Limited in UAE.

H₁: Green Finance does not have any influence on the cost reduction in Abu Dhabi Gas Industry Limited in UAE

Hypothesis 3

H₀: Green Finance has any influence on the cost reduction in Abu Dhabi National Oil Company. H₁: Green Finance does not have any influence on the cost reduction in Abu Dhabi National Oil Company

Survey Methodology

The review has selected to use quantitative study tactic in data gathering and analysis. For function of persuasive analysis of research purposes together with survey goal, other essential techniques that will be utilized comprise of assessment of exisiting literature, dispensation of coherent study surveys, and monitoring essential signs of green finance on cost reduction (Mohamed et al., 2014, p. 662). Another method that shall be utilized for collecting of information will entail observation of critical signs of green finance that centres on assessment of cost reduction. In evaluation studies, design of assembling information is fundamental divisions in each work of survey (Christophers 2018, p. 337). Data will be presented through graphs, pie charts, maps, and photographs.

Ethical Issues 

Every respondent in the study will be given adequate explanation on the purpose of the study that they are about to be part of at any time during the study. Data gathered will be protected throughout the entire process of study. Respondent will be given time to seek any clarification before being recruited for investigation (Lekhraibani, Rutledge, and Forstenlechner 2015, p. 113). Participation for the investigation will be confidentiality together with voluntary will be maintained at all levels during the examination.

Population and samples 

The population for this research shall include managers and workers from the two companies that deal with oil and gas in the UAE. The sample for the study will include five managers and fifteen workers from each company leading to a total of forty sample units that will help in answering questions during the study (Meir 2015, p. 161). The use of workers and managers will help in understanding how green finance has helped in ensuring that there is cost reduction the operations of these two companies.  

Budget of Project

The economic plan of this proposal will total to six thousand dollars to attain its conclusion as set in schedule as exemplify in the table below. The future budget of survey in this task has been specific for diverse major purposes that embrace:

Application	Estimated Amount (in dollars)
Evaluation  of literature	1,650
Data collection	2,800
Information analysis	1,550
Total for estimated financial  plan	6,000

Time plan

The model array of data in the table beneath exemplify period for every intended event in entire investigation

Title of mission	Starting Time	Day of completion	Period (Days)
Plan proposal	30/9/2018	19/10/2018	20
Review of Literature	20/10/2018	5/11/2018	47
Data gathering	6/11/2018	5/12/2018	31
Analysis of facts	6/12/2018	28/12/2018	23
Final Report Submission	29/12/2018	20/1/2019	23

Project management 

The quantitative data in this survey will be coded and entered into different database of computer designed with Statistical packages such as SPSS. The use of correlation analysis will be employed to test the relationship between dependent as well as independent variables.

New and relevant research 

There is a need to promote green finance to help in improving how companies uses green building design to help in reducing cost of operations (Meir 2015, p. 158). The grant that the company receives from the device has enabled the management of the oil and gas companies to improve on its use of little amount in developing their operations. There is a need to focus on impacts of green finance on cost of operations and wages of employees as it can help in understanding how it reduces their costs.

Conclusion

From the findings of this research, impacts of green finance will be evident on cost operations of Abu Dhabi National Oil Corporation together with Abu Dhabi Gas Industry Limited. The research illustrates how green finance incorporated design, construction, and operational practices that significantly eliminates or reduce the adverse effect of development on environment with occupants while proposing strategies that address how to reduce costs of operations. This study will help in examining how costs vary with the type of level of sustainability features that are incorporated into individual progress and with their development contexts.

References

Bracking, S 2015, ‘Performativity in the Green Economy: how far does climate finance create a fictive economy?’, Third World Quarterly, vol. 36, no. 12, pp. 2337–2357, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=111657982&site=ehost-live>.

Bracking, S 2015, ‘The Anti-Politics of Climate Finance: The Creation and Performativity of the Green Climate Fund’, Antipode, vol. 47, no. 2, pp. 281–302, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=100799238&site=ehost-live>.

Christophers, B 2018, ‘Risking value theory in the political economy of finance and nature’, Progress in Human Geography, vol. 42, no. 3, pp. 330–349, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=129644811&site=ehost-live>.

Djurovic, G, Cetkovic, J, Djurovic, V & Jablan, N 2018, ‘The Paris Agreement and Montenegro’s INDC: Assessing the Environmental, Social, and Economic Impacts of Selected Investments’, Polish Journal of Environmental Studies, vol. 27, no. 3, pp. 1019–1032, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=128410520&site=ehost-live>.

Gueldry, M & Liang, W 2016, ‘China’s Global Energy Diplomacy: Behavior Normalization Through Economic Interdependence or Resource Neo-mercantilism and Power Politics?’, Journal of Chinese Political Science, vol. 21, no. 2, pp. 217–240, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=116255478&site=ehost-live>.

Hwang, J, Lee, S & Müller, MD 2017, ‘Multi-Scalar Practices of the Korean State in Global Climate Politics: The Case of the Global Green Growth Institute’, Antipode, vol. 49, no. 3, pp. 657–676, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=122685854&site=ehost-live>.

Lekhraibani, R, Rutledge, E & Forstenlechner, I 2015, ‘Securing a Dynamic and Open Economy: The UAE’s Quest for Stability’, Middle East Policy, vol. 22, no. 2, pp. 108–124, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=103224749&site=ehost-live>.

Leonard, WA 2014, ‘Clean Is the New Green: Clean Energy Finance and Deployment Through Green Banks’, Yale Law & Policy Review, vol. 33, no. 1, pp. 197–229, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=102371522&site=ehost-live>.

Mathews, JA & Kidney, S 2012, ‘Financing climate-friendly energy development through bonds’, Development Southern Africa, vol. 29, no. 2, pp. 337–349, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=75162367&site=ehost-live>.

Meir, IA 2015, ‘Constraints to assets, waste to resources: integrating green technologies in a novel pilot project for drylands’, International Journal of Sustainable Energy, vol. 34, no. 3/4, pp. 154–165, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=99777358&site=ehost-live>.

Mohamed, N, Maitho, E, Masvikeni, E, Fourie, R, Tilly, M & Zondi, N 2014, ‘The Green Fund of South Africa: Origins, establishment and first lessons’, Development Southern Africa, vol. 31, no. 5, pp. 658–674, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=97509066&site=ehost-live>.

Özev, MH 2017, ‘Saudi Society and the State: Ideational and Material Basis’, Arab Studies Quarterly, vol. 39, no. 4, pp. 996–1017, viewed 20 October 2018, <https://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=125905909&site=ehost-live>.