Does green finance inspire sustainable development? Evidence from a global perspective

Wang, Kai-Hua; Zhao, Yan-Xin; Jiang, Cui-Feng; Li, Zhengzheng

doi:10.1016/j.eap.2022.06.002

Cited by 128 publications

(52 citation statements)

References 100 publications

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“…However, these studies provide no empirical evidence and are only based on qualitative discussions. Some studies [14,31,82,83] provide empirical evidence of GPR and environmental sectors in China and other countries. There is no detailed time-varying empirical discussion of the empirical results of these studies.…”

Section: Discussionmentioning

confidence: 99%

Is Geopolitical Risk Powerful Enough to Affect Carbon Dioxide Emissions? Evidence from China

et al. 2022

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Escalating geopolitical factors are closely related to climate warming, but researchers have not fully considered this. Therefore, the purpose of this study is to explore the interaction between geopolitical risk (GPR) and carbon dioxide (CO2) in China. This paper uses the recently developed GPR index and a bootstrap Granger rolling-window estimation. Empirical results spanning different subsamples reveal a two-way causal relationship between GPR and CO2. GPR transforms energy consumption and economic activities through trade disputes, military deployments and energy issues, which have a complex impact on CO2 emissions. Oppositely, CO2 emissions affect GPR through changes in international cooperation and shaping of geopolitical systems. In view of these empirical results, we put forward several policy recommendations. The Chinese government can effectively consider GPR to control CO2 emissions by increasing green investment and signing environmental contracts. Enterprises must focus on research and development (R&D) and investment in new energy innovations. In addition, international organizations can be a useful tool for monitoring decarbonization policies and resolving conflicts between countries.

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Section: Discussionmentioning

confidence: 99%

Is Geopolitical Risk Powerful Enough to Affect Carbon Dioxide Emissions? Evidence from China

et al. 2022

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“…The following aspects can explain the negative relationship between COP and GBI. High oil prices burden enterprises' costs in a short time, making them face business difficulties, and they do not have the capacity and desire to issue green bonds (Wang et al, 2022c). Meanwhile, investors are also cautious and hesitant to invest in green bonds when oil prices are high volatility.…”

Section: Basic Quantile Regressionmentioning

confidence: 99%

Oil Price Shocks, Economic Policy Uncertainty, and Green Finance: A Case of China

Wang

Umar

et al. 2022

Technological and Economic Development of Economy

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This study investigates the long- and short-run effects of crude oil price (COP) and economic policy uncertainty (EPU) on China’s green bond index (GBI) using the quantile autoregressive distributed lag model. The empirical results show that COP and EPU produce a significant positive and negative influence on GBI in the long-run across most quantiles, respectively, but their short-run counterparts are opposite direction and only significant in higher quantiles. Thus, major contributions are made accordingly and shown in the following aspects. The findings emphasise the importance of understanding how COP and EPU affect China’s green bond market for the first time. In addition, both the long- and short-run effects are captured, but long-run shocks primarily drive the green bond market. Finally, time- and quantile-varying analyses are adopted to explain the nexus between COP and EPU to GBI, which considers not only different states of the bond market but also events that occur in different time periods. Some detailed policies, such as a unified and effective green bond market, an early warning mechanism of oil price fluctuation, and prudent economic policy adjustments, are beneficial for stabilising the green finance market.

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“…Bhutta et al ( 2022 ) studied the impacts of green bonds and concluded that promoting green bonds is helpful in combating environmental degradation. In another study, Wang et al ( 2022 ) analyzed monthly data from 2011 to 2021 of different economies and found that issued green bonds significantly contribute to sustainable development. Tolliver et al ( 2020 ) expressed that in line with the Paris Agreement, all countries try differently to promote green financing tools, and green bonds are among the most appropriate instruments.…”

Section: Literature Reviewmentioning

confidence: 99%

Is there any recovery power for economic growth from green finance? Evidence from OECD member countries

Huang

Cao

Zhu

2022

Econ Change Restruct

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This paper investigates the dynamic interactions between green finance, economic growth, and green energy consumption for the Organization of Economic Cooperation and Development (OECD) members. The econometric analysis is conducted on annual data gathered throughout 2010–2020 using different estimation techniques of the Vector Autoregressive model, causality, and co-integration approaches. The main results confirmed a positive bi-directional relationship between GDP and green energy consumption. In addition, there is a two-way relationship between the volume of green bond issuance and the use of green energy in OECD countries. The recommended practical policy recommendations are establishing a unified green bonds market among OECD member states, prioritizing green projects to support the issued green bonds, improving the financial system, and financing rural electrification and electric vehicle transition by green bonds.

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Does green finance inspire sustainable development? Evidence from a global perspective

Cited by 128 publications

References 100 publications

Is Geopolitical Risk Powerful Enough to Affect Carbon Dioxide Emissions? Evidence from China

Is Geopolitical Risk Powerful Enough to Affect Carbon Dioxide Emissions? Evidence from China

Oil Price Shocks, Economic Policy Uncertainty, and Green Finance: A Case of China

Is there any recovery power for economic growth from green finance? Evidence from OECD member countries

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