Innovative financing for infrastructure: A systematic literature review

Abstract

This study aims to address the knowledge gap in the systematic analysis of prior research on Innovative Financing (IF) applications for infrastructure as an alternative to traditional financing methods. Using a systematic literature review of 131 journal articles published between 2010 and 2023, the study identifies a growing research interest in IF and explores various financing mechanisms, including Value Capture Finance, Tax Increment Financing, Transportation Reinvestment Zones, Blockchain-based tokenization, Infrastructure Bonds, Sovereign Wealth Funds, Public Asset Corporations, Government Co-Financing, Pricing Climate-related Risk, and Crowdfunding. The findings highlight key factors influencing IF applications, such as risk management, macroeconomic conditions, institutional and governance quality, stakeholder perceptions, and transaction cost efficiency. This study provides valuable insights into emerging IF applications across multiple sectors, emphasizing the importance of these critical factors in ensuring effectiveness, particularly the quality of institutional frameworks and contextual adaptability. Additionally, it identifies underexplored financing instruments in prior research, offering directions for future studies on innovative infrastructure financing.