The impacts of the COVID-19 pandemic on China's green bond market

Abstract

The paper applies the event study method and econometric models to investigate the impacts of COVID-19 on China's green bond market for the first time. We find that (1) the COVID-19 pandemic has significant impacts on China's green bond market and increases the cumulative abnormal return (CAR) of the green bonds greatly. After the pandemic is relieved, the CAR drops significantly; (2) the improving of bond issuers’ governance capacity, the weakening of information asymmetry and the reinforcing of debt-paying ability can effectively mitigate the negative impacts and positively promote the recovery of bond issuers after the pandemic; (3) the impacts of bond issuers’ governance capacity, information asymmetry and debt-paying ability on the CAR of green bonds are significantly heterogeneous before and after the pandemic due to their property rights and whether they are listed or not.

Dynamic nonlinear connectedness between the green bonds, clean energy, and stock price: the impact of the COVID-19 pandemic

“…Halbrügge et al ( 2021 ) conclude that the COVID-19 epidemic has led to a decline in electricity demand and an increase in the proportion of renewable energy consumption. Yi et al ( 2021 ) consider that COVID-19 pandemic has significantly influenced the green bond market. Mensi et al ( 2021 ) document that COVID-19 may lead to the inefficiency of green bond market.…”

Energy efficiency financing and the role of green bond: policies for post-Covid period

“…The negative impact of COVID-19 on energy efficiency financing and the potential power of green bond to solve this problem motivated the authors to conduct this academic research. To the best of authors' knowledge, although a few scholars such as Mukanjari and Sterner (2020) and Yi et al (2021) investigated the impacts of COVID-19 on green financing or Catttaneo (2019) and Forrester and Reames (2020) studied the energy efficiency financing, the matter of modeling energy efficiency-green bond relationship has not been addressed by any academic study. Accordingly, this literature gap is filled in by this research and can provide various practical policy implications for scholars as well as policymakers in different countries.…”

Tackling covid-19 crisis through energy efficiency investments: Decision support tools for economic recovery

“…EE investments are expected to fall by an estimated 10–15%, as vehicle sales and construction activity weaken and spending on more efficient appliances and equipment is dialled back [ 32 ] although a global environment efficiency growth had been observed the latest years [ 39 , 40 ]. It has been noted that capital flows in EE projects related to environmental pollution have been decreased [ 41 ] Due to the sharp decline of the oil price resulting from the coronavirus lockdown measures, the implementation of EE policies’ impact decreased as cheaper energy always leads consumers to use it less efficiently, while reducing the appeal of buying more efficient cars or retrofitting buildings to save energy [ 42 ].…”

“…However, covid-19 pandemic poses negative and unpredicted consequences in the economy which increased more confusion, lowering trust, creating turbulence in economic market and increasing uncertainty among investors [ [9] , [10] , [11] ]. Indeed, capital flows in EE projects related to environmental pollution have been decreased [ 12 ].…”