This study demonstrates how to access social value from profit-oriented public–private partnership. The author examines social impact bonds (SIBs) as a tool for financing public–private investments. Using the database of worldwide SIB-financed projects, this study develops an incentive-compatible mechanism of profit write-off for social purposes (e.g. medical services for uninsured constituencies). It presents the feasibility space of this mechanism given entrepreneur, institutional boundaries. The mechanism resurfaces public–private partnerships as a vehicle where profitability and social goals can be met.

Can conventional private participation in infrastructure incorporate Islamic finance requirements? Sub-Saharan Africa has substantial infrastructure-funding needs, but it is challenging to attract capital using conventional solutions, given the governing requirements of Islamic finance. In a comparative model setup, I indicate the conditions under which public–private partnerships (PPPs) are a viable organizational form of financing public services. I point out the trade-off conditions under which private and public investors reach their expectations of maximizing profit and providing social benefits simultaneously. Based on the observed socio-economic trends, conventional–Islamic PPPs can enable public services’ development with a strong emphasis on social welfare.

The study aims to assess the relationship between governance effectiveness, measured by the Worldwide Governance Indicators, and the use of green bonds worldwide. We apply panel data models with random effects and a robust linear regression model that allows us to identify the impact of the family of variables on green bonds. We found a statistically significant correlation between the quality of a government, measured as government effectiveness, and the value of green bond issuances. Thus, it is advised under New Public Governance to increase the effectiveness of their functioning, which may contribute to greater investor interest in environmental projects.