kaal:claim:4685567-013

Impact markets that promote retrospective funding and resale of impact carry an inherent risk of incentivizing net negative ventures, because individuals can capture the benefit of positive impacts without bearing the cost when their actions produce negative impacts.

Source quote, verbatim
This risk stems from the potential for individuals to benefit from causing positive impacts without 46 bearing the costs if their actions result in negative impacts.
From

Wulf A. Kaal, Impact Investing Innovation - From Impact 1.0 to 3.0 (2024), Social Impact Credits, p. 21
https://ssrn.com/abstract=4685567 · source PDF

Cite as

Wulf A. Kaal, Impact Investing Innovation - From Impact 1.0 to 3.0 (2024). SSRN: https://ssrn.com/abstract=4685567

Holds when
Classification

failuresupport: arguedfailure: Asymmetric Payoff for Net Negative Venturesfamily: staking-and-incentive-misalignmentrisk-and-incentiveseconomics

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