The Development of the Green Capital Budgeting Approaches Based on Traditional Capital Budgeting Approaches

The study aims at developing the green capital budgeting approaches as we as emerging structural model of green capital budgeting decisions through adjustment of the environmental degradation forces to the given investment projects' inflows and outflows respectively. Moreover, the study attempts to know the extent in which these forces contribute to justify the respective green approaches of capital budgeting and to focus how these techniques relate to conventional methods of this budgeting. The researcher has developed the green methods of capital budgeting through using the five determinants that have contributions to impair the environment. The researcher used the data of a single investment project, loan to customer provided by a bank, Rupali Bank Limited, HSTU Branch, Dinajpur, Bangladesh. The researcher found that the higher degree of environmental degradation forces are involved in investment, the lower are the value(s) of green capital budgeting approaches than corresponding traditional capital budgeting approaches. No involvement of non- green forces to an investment project till to maturity, results in the individual values of traditional capital budgeting approaches complied with individual values of respective green capital budgeting approaches. Indeed, the development of green capital budgeting approaches are justified but applied in subject to quantifying the abstract characterization of non-green variables.