Publication Type

Journal Article

Version

publishedVersion

Publication Date

2-2024

Abstract

We deploy a prompt-augmented GPT-4 model to distill comprehensive datasets on the global application of debt-for-nature swaps (DNS), a pivotal financial tool for environmental conservation. Our analysis includes 195 nations and identifies 21 countries that have not yet used DNS before as prime candidates for DNS. A significant proportion demonstrates consistent commitments to conservation finance (0.86 accuracy as compared to historical swaps records). Conversely, 35 countries previously active in DNS before 2010 have since been identified as unsuitable. Notably, Argentina, grappling with soaring inflation and a substantial sovereign debt crisis, and Poland, which has achieved economic stability and gained access to alternative EU conservation funds, exemplify the shifting suitability landscape. The study's outcomes illuminate the fragility of DNS as a conservation strategy amid economic and political volatility.

Keywords

DNS, retrieval augmented generation, nature-based solutions, sustainable credit finance, nature finance, adaptation finance, generative AI, GPT-4

Discipline

Business Law, Public Responsibility, and Ethics | Finance and Financial Management

Publication

Frontiers in Artificial Intelligence

Volume

7

First Page

1

Last Page

12

ISSN

2624-8212

Identifier

10.3389/frai.2024.1167137

Publisher

Frontiers Media

Embargo Period

4-16-2024

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Additional URL

https://doi.org/10.3389/frai.2024.1167137

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