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The COVID-19 pandemic has slowed progress to the achievement of net-zero and sustainability goals. In particular, emerging economies may benefit greatly from the cooperation of banking institutions in promoting green recovery. This study focusses on banking institutions in South Asian countries that boost the intermediary financial spread, according to a thorough sample of banks from 2011 to 2021. The analysis employs the data envelopment analysis method, and the results are robust. In addition to these characteristics, we also consider aspects such as urbanisation, industrialisation, and population expansion. Banks may play a significant role in facilitating the realisation of environmental targets because of the clear advantages of the results, which provide comfort for green recovery. As green financing may lead to more efficient and robust financial systems, the results provide strong evidence for policymakers, financial institutions, and the financial sector.
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The Sustainable Development Goals of the United Nation and interest by investors in Environmental, Social and Governance (ESG) investment strategies have caused a rapid shift to the green or renewable energy sector, from traditional or gray (oil, gas, and coal) energy companies. In this study, we examine whether and to what extent, financially speaking, there is a price to pay for investing in renewable energy sector equity. Moreover, we seek to determine whether green investments can be considered a hedge during times of financial stress. We find that alphas from investments in a portfolio of gray (overall energy sector) stocks and versus a portfolio of renewable energy equities during an exogenous, non-financial shock-the COVID-19 pandemic-and during non-crisis periods did not differ statistically. However, the renewable energy index showed higher idiosyncratic volatility than the energy index, as expected. The results are robust to alternative model specifications. From a practical perspective, our results are informative in that they provide insights into the tradeoffs associated with renewable energy investments. In particular, risk-adjusted returns to a renewable energy portfolio may be affected by greater idiosyncratic risk.
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The recent global recession due to Covid-19 has led to a drop in natural resource prices, which has contracted energy demand. Amid this concern, environmentally sustainable renewable energy projects have become uncompetitive and an obstacle to achieving the Sustainable Development Goals (SDGs). Following the nonlinear autoregressive distributed lag (NARDL) model proposed by Shin et al. (2014), to asymmetrically explore the impact of green bonds on renewable energy investment and environmental pollution and the impact of renewable energy consumption on environmental degradation in China over the period 1970–2020. The results show that the expansion of green bonds (GB+) significantly promotes renewable energy investment and reduces environmental pollution, while the contraction of green bonds (GB−) significantly reduces renewable energy investment and stimulates environmental damage. Likewise, expansion of renewable energy consumption (REC+) significantly reduced environmental degradation, while contraction of renewable energy consumption (REC−) significantly contributed to environmental degradation. Moreover, the result also validates the existence of inverted U-shaped EKC hypothesis in China The VECM Granger causality test indicate that renewable energy investment, green finance, renewable energy consumption, CO2 emission, and Gross Domestic Product (GDP) have long term causality. Chinese policymakers must focus on strengthening green finance, which will encourage renewable energy investment and renewable energy generation. Moreover, renewable electricity output greatly facilitates renewable energy investment, so China must innovate policies to take into account renewable electricity rather than fossil fuel generation in order to achieve the Sustainable Development Goals (SDGs).
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This study explores the impact of green financing on economic growth during the COVID-19 pandemic. Using data from 30 countries, we find that green financing has a positive impact on economic growth. This finding has both theoretical and practical implications. © 2022, Asia-Pacific Applied Economics Association. All rights reserved.
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Green finance is an essential instrument for achieving sustainable development. Objectively addressing correlations among different green finance markets is conducive to the risk management of investors and regulators. This paper presents evidence on the time-varying correlation effects and causality among the green bond market, green stock market, carbon market, and clean energy market in China at multi-frequency scales by combining the methods of Ensemble Empirical Mode Decomposition Method (EEMD), Dynamic Conditional Correlation (DCC) GARCH model, Time-Varying Parameter Vector Autoregression with Stochastic Volatility Model (TVP-VAR-SV), and Time-varying Causality Test. In general, the significant negative time-varying correlations among most green finance markets indicate a prominent benefit of risk hedging and portfolio diversification among green financial assets. In specific, for different time points and lag periods, the green finance market shock has obvious time-varying, positive and negative alternating effects in the short-term scales, while its time delay and persistence are more pronounced in the medium-term and long-term scales. Interestingly, a positive event shock will generate positive connectivity among most green finance markets, whereas a negative event including the China/U.S. trade friction and the COVID-19 pandemic may exacerbate the reverse linkage among green finance markets. Furthermore, the unidirectional causality of "green bond market - carbon market - green stock and clean energy markets” was established during 2018–2019. © 2023
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Background: In China, the transportation sector is the main energy consumer and the main source of carbon emissions. Reducing carbon emissions in the transportation sector is an important goal for China, especially during the current period of economic development. Due to the impact of pandemic shocks, the rapid development of green finance is conducive to supporting the transportation sector in achieving a carbon peak. Thus, we examined whether the development of green finance is still effective under the impact of a pandemic and the actual effect of green finance on the reduction of carbon emissions. Methods: In this study, we searched the internet for consumption structure data of vehicles and green finance indices of 30 Chinese provinces and cities from 2016 to 2021. A regression discontinuity model was constructed to test the effect of pandemic shock and green finance development on the reduction of transportation energy carbon emissions. Results: The results show that the impact of the COVID-19 pandemic has helped people change their preference toward more energy-efficient vehicles and reduce carbon emissions in the transportation sector. Green finance can effectively contribute to the reduction of transportation energy carbon emissions;however, the overall mitigation effect is limited. Conclusion: The empirical evidence is not only helpful in assessing the long-term impact of the COVID-19 pandemic but also conducive to the appropriate establishment of policy tools for supporting green finance development, which is further conducive to reducing carbon emissions in the transportation sector. Copyright © 2023 Liu, Cheng, Guan, Liu, Zhang, Li and Yang.
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PurposeCarbon trading mechanism has been adopted to foster the green transformation of the economy on a global scale, but its effectiveness for the power industry remains controversial. Given that energy-related greenhouse gas emissions account for most of all anthropogenic emissions, this paper aims to evaluate the effectiveness of this trading mechanism at the plant level to support relevant decision-making and mechanism design.Design/methodology/approachThis paper constructs a novel spatiotemporal data set by matching satellite-based high-resolution (1 × 1 km) CO2 and PM2.5 emission data with accurate geolocation of power plants. It then applies a difference-in-differences model to analyse the impact of carbon trading mechanism on emission reduction for the power industry in China from 2007 to 2016.FindingsResults suggest that the carbon trading mechanism induces 2.7% of CO2 emission reduction and 6.7% of PM2.5 emission reduction in power plants in pilot areas on average. However, the reduction effect is significant only in coal-fired power plants but not in gas-fired power plants. Besides, the reduction effect is significant for power plants operated with different technologies and is more pronounced for those with outdated production technology, indicating the strong potential for green development of backward power plants. The reduction effect is also more intense for power plants without affiliation relationships than those affiliated with particular manufacturers.Originality/valueThis paper identifies the causal relationship between the carbon trading mechanism and emission reduction in the power industry by providing an innovative methodology for identifying plant-level emissions based on high-resolution satellite data, which has been practically absent in previous studies. It serves as a reference for stakeholders involved in detailed policy formulation and execution, including policymakers, power plant managers and green investors.
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Corporate social responsibility can assist in reducing the noise caused by pricing volatility and a lack of energy-efficient business solutions. The study's objective is twofold: (i) to investigate the role of corporate social responsibility (CSR) in reducing volatility through the contribution of energy-efficient strategies;(ii) to identify research trends in the field that may indicate future research directions for the development of more dynamic strategies that will help in mitigating the impact of pricing volatility. A five-step bibliometric analysis was applied to address the research question. The findings were visualized by using bibliometric tools such as R Studio, Biblioshiny, and VOSViewer. Chinese academics have been revealed as pioneers in integrating CSR into corporate strategies to reduce volatility and support energy-efficient investments. Moreover, results indicate that financial institutions must embrace a new business model based on both CSR and environmental, social, and corporate governance (ESG) principles. Since very little is known about the interaction structure between CSR and ESG in the mitigation of price volatility, the purpose of this article is to bridge that knowledge gap. The pioneering character of this research—the construction of a business model based on the principles of CSR and ESG—contributes significantly to both the field's knowledge and the practice of corporate sustainability management.
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Green finance is gaining traction as a public policy objective. This paper summarises global and Indian progress in the field of green finance. Also, it examined the development in the field of the green finance in India, roadmap of the green finance sustainability, requirement for the significance of the green finance and Initiatives taken by the Government of India. Using a variety of data sources, we analyse public awareness (Google Trends) and financial possibilities (bank loans and bond issuances) for green initiatives. While public awareness and financing options have improved in India, our findings indicate that reducing asymmetric information through improved information management systems and increased collaboration among stakeholders could pave the way for more environmentally friendly and sustainable long-term economic growth. The need for the supply of sustainable financing to grow faster, already demonstrated by the financial gap for the sustainable development goals, has been reinforced from post-COVID19 environment, with escalation of climate issue. For this, investors, investees, middlemen and policymakers must discover methods to collaborate more effectively and with a greater sense of urgency.
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Despite the availability of substantial empirical evidence on the influence of green finance (GF) or green innovation (GI) on environmental performance (EP), only a few studies have attempted to examine the link between Fintech adoption (FA), GF, GI, and EP during the COVID-19 pandemic. Thus, by applying the structural equation modeling (SEM) approach to the data obtained from 302 banking staff in a developing economy (in this case, Bangladesh), this research work empirically examines the association between FA, GF, and EP, alongside the mediating role of GI. The empirical results indicated that FA significantly impacts GF, GI, and EP and that GF has a significant positive influence on GI and EP. Also, GI was observed to positively influence EP and partially mediate the relationship between FA, GF, and EP of banks. As one of the earliest studies to empirically investigate the relationships among these variables, these findings add to the existing scholarship on technological innovation, green finance, and environmental sustainability in the context of financial institutions in an emerging market during the pandemic. Moreover, the study demonstrates the significance of FA, GF, and GI in improving the EP of financial institutions and, ultimately, in ensuring the sustainable economic development of the country.
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Although switching from non-renewable to renewable energy is believed to stimulate low-carbon economic growth, the means to establishing this energy transition have largely remained unexplored in the extant literature. Against this backdrop, this study focuses on evaluating how scaling public investment in renewable energy-related research and development projects impacts the carbon productivity levels in the top-10 renewable energy-investing countries. The estimation strategy comprised econometric methods that can handle cross-sectional dependency and slope heterogeneity related concerns in the data. Regarding the key findings, higher public research and development-related investments in renewable energy are observed to boost carbon productivity levels in the concerned countries, while natural resource consumption and net exports are found to reduce carbon productivity. Besides, the results endorsed that public research and development investment for renewable energy development exhibits a moderating role by jointly boosting carbon productivity with higher natural resource consumption and net exports. Moreover, it is also seen to inflict a mediating effect by jointly boosting carbon productivity with urbanization. In line with these findings, the concerned governments are recommended to scale such investment in order to stimulate technological innovation so that renewable energy transition can take place to establish low carbon economic growth. © 2023 Elsevier Ltd
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Although the public sector is seen as the main party responsible for taking action on climate change and sustainable development, private commercial banks are in a unique position to support or shift the funding focus on green investment. By employing a qualitative research approach based on six commercial banks, this paper aims to investigate the current practices of how commercial banks are contributing to advance green business initiatives. Accordingly, this research examines and identifies the facilitators and challenges in domestic and foreign commercial banks in Vietnam which support green business initiatives. In addition to addressing the recent calls for the investigation of the role of commercial banks in facilitating green finance, our study expands the emerging literature by demonstrating the current efforts of Vietnam's commercial banks in fostering green finance during the Covid-19 pandemic. © 2022 ERP Environment and John Wiley & Sons Ltd.
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As a result of the COVID-19 pandemic, production costs have grown, while human and economic resources have been reduced. COVID-19 epidemic costs can be reduced by implementing green financial policies, including carbon pricing, transferable green certificates, and green credit. In addition, China's tourist industry is a significant source of revenue for the government. Coronavirus has been found in 30 Chinese regions, and a study is being conducted to determine its influence on the tourism business and green financial efficiency. Econometric strategies that are capable of dealing with the most complex issues are employed in this study. According to the GMM system, the breakout of Covid-19 had a negative effect on the tourism business and the efficiency of green financing. Aside from that, the effects of gross capital creation, infrastructural expansion, and renewable energy consumption are all good. The influence of per capita income on the tourism industry is beneficial but detrimental to the efficiency of green finance. Due to the current pandemic condition, this report presents a number of critical recommendations for boosting tourism and green financial efficiency.
Subject(s)
COVID-19 , Humans , COVID-19/epidemiology , Pandemics , Tourism , Disease Outbreaks , China , Economic Development , EfficiencyABSTRACT
The environmental impacts of monetary policy received academic attention after the 2008 financial crisis and the 'market neutral' quantitative easing policies that followed. This article examines the Bank of England's Corporate Covid Financing Facility (CCFF) and the Asset Purchasing Facility (APF) between June 2020 and June 2021 to assess whether the Bank's response to the COVID-19 pandemic was aligned with the transition to sustainability. The data indicates that the Bank of England's monetary allocation schemes again served as a panacea for businesses with ecologically intensive business models and a Treasury committed to restoring the pre-existing growth model. Indeed, the Bank's QE schemes now represents an element of the crisis management governance that repeatedly 'locks in' the ecologically-calamitous economic trajectory at potential critical junctures. The Bank's shielding of its technocratic and depoliticised status has thus far inhibited any leadership role in tackling the climate crisis, despite its growing power as an actor of economic governance at times of crisis and purported enthusiasm to 'build back better'.
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This paper investigates the connectedness among the climate change index, green financial assets, renewable energy markets, and geopolitical risk index from June 1, 2012 to June 13, 2022, using Quantile Vector Autoregressive (QVAR) and wavelet coherence (WC). The Total connectedness index (TCI) varies as long as the highest TCI originates in the upper quantile. We also note that the higher TCI decreases after the second wave of COVID19 and increases during the first 100 days of the Russia-Ukraine conflict. Moreover, the results show that Geopolitical risk (GPR) is a net transmitter of the climate change index during the Russian invasion of Ukraine. The green bond and clean energy markets are negatively connected to the GPR at extreme 10 th and 90 th quantiles. The wavelet coherence confirms the QVAR results that the climate change market can be a safe haven against GPR during the Russian invasion. The climate change index, green financial assets, and clean energy are strong influencers in the financial markets and are vital to international peace, reducing geopolitical risk. The study reports a few novel conclusions and implications from a sustainable development perspective.
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This paper aims to map the effects of the rapid spread of coronavirus (COVID-19) on stock price dynamics and markets selections based on data from March 22, 2021, to September 20, 2021. Options markets from 2020 to 2021, multiple kinds of critical COVID-19 data. The proposed hypothetical modal considers investors' behavior and errors caused by the level of sentiment elicited for stock markets and green categories. This paper another element (1) Covid-19 (2) feeling, and (3) networking websites, for example, Covid-19 influence on the green size, green direction, and impact on securities prices. This paper used google search data work also creates a proxy for emotions dependent on five main categories of Data: (1) Covid-19, pandemic effect (2) markets, (3) lockdown, (4) banking and government aid. Moreover, this paper Use (a) VIX index sentiment, (b) S& The P 500 index is a measure of how well a sentiment (c) Sentiment in the S& amp;P 500 bank index. The Projected to empirical Finding follow First Level during the Covid-19, effect on jump volatility, and variability level in persistence on the green stock market exceeds that on the options market. VIX index green financial level increases with the COVID green financial level increase with the COVID-19 market index, index banking index and lockdown index. Therefore, it concluded the Share market statistic, COVID-19 benchmark, and long-run volatility. The fraction of the leap government assistance reduced. We find that the outbreak of the Pandemic of COVID-19 effects of the S&P 500 Index and S&P 500 Banks Index decrease with highest values (39%) but only after a surge in volatility covid-19 Pandemic. These results comply with our model's expectations.
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The global financial downturn induced by COVID-19 has hampered the effectiveness of renewable energy developments, impeding the accomplishment of the United Nations' sustainable development targets. Green finance is a significant means for promoting renewable energy investment and achieving sustainability. Using data from 2012 to 2021 from fifty energy firms in China, this study highlights the starring part of geopolitical risk, green finance, and environmental tax in investment in renewable energy (IRE) sources. It also investigated how IRE impacts the studied firms' electricity output. The data were analyzed through quantile regression and dynamic analysis techniques. The results indicated that green financing and environmental tax significantly impact IRE sources with 0.137*** and 0.428*** beta values, respectively. However, geopolitical risk significantly impedes such projects. Similarly, IRE significantly increases the electricity output of Chinese energy firms. This research is unique in the sense of studying green financing, geopolitical risk, and environmental tax nexus in renewable energy investments leading to electricity generation, which shows a pivotal role in achieving environmental sustainability and provides valuable insights to environmentalists and policymakers to design and implement ecological strategies leading to achieving sustainable development goals.
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The global economic recession caused by COVID-19 has posed a severe threat to the feasibility of renewable energy projects, hampering the United Nation (UN) sustainable development goals. Sustainable financing (SF) is a crucial instrument for promoting investment in renewable energy (IRE) sources, as it is regarded as a crucial aspect in achieving long-term sustainability. This study sheds insight on the impact of SF, geopolitical risk (GPR), economic growth (EG), and environmental regulation (ER) on IRE sources by evaluating 10 years of data from 35 Chinese energy businesses from 2012 to 2021. The data analysis is done by utilizing quantile regression and dynamic analytic techniques, demonstrating that SF, EG, and ER have a significant positive effect on IRE sources. However, GPR has a significant detrimental impact on IRE in China. This is one of the early studies to examine the crucial role of SF, GPR, EG, and ER in IRE, which is critical for environmental sustainability. In addition, it provides policymakers and environmentalists with crucial insights for developing and executing environmental strategies that can deliver long-term benefits and meet SD goals.
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Purpose: Green banking, an ethical banking concept, concentrates on environmental protection and encourages social and environmental sustainability, perceived cognitive efforts, and subjective norms ensuring ecologically responsive banking services. Consequently, although there have been considerable green banking attempts in Bangladesh, it is yet unknown how environmental sustainability, perceived cognitive effort, and subjective norms affect usage behavior. The present research aims to uncover this gap, extending the Theory of Reasoned Action (TRA) to examine the determinants of the bankers' green banking usage behavior during COVID-19. Methods: Data were collected from 366 bankers in Bangladesh using a purposive sampling technique and analyzed with structural equation modeling (SEM) using SMART PLS 3 software. Findings: The study found management support (0.291, t-statistics = 1.978, p 0.000), environmental sustainability (ß = 0.278, t-statistics = 2.752, p < 0.001), perceived cognitive efforts (ß = 0.401, t-statistics = 3.549, p < 0.000), and subjective norms (ß = 0.309, t-statistics = 4.352, p < 0.000) influence bankers' attitudes. Whereas environmental sustainability (ß = 0.503, t-statistics = 3.726, p < 0.001), perceived cognitive efforts (ß = 0.103, t-statistics = 2.020, p < 0.002), subjective norms (ß = 0.281, t-statistics = 4.607, p < 0.000), and attitudes (= 0.602, t-statistics = 5.523, p 0.015) influence bankers' green banking usage behavior. Finally, the mediating role of management supports, environmental sustainability, cognitive efforts and subjective norms on green banking usage behavior through attitudes was significant. Contribution/Conclusion: The study contributed to existing literature validating the proposed holistic framework applying TRA and three contemporary dimensions explaining bankers' behavior toward green banking practice. Finally, the implementers should focus on green banking practices as green banking is one of the key strategies to protect the environment, assure social justice, and create economic success.
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The main purpose of this research is to investigate the effects of issued green bonds and energy price volatility on the consumption of three types of green energy (wind, solar, and hydro) in Japan during 1990–2020. For this purpose, an autoregressive distributed lag (ARDL) estimation method was used. The main findings revealed the long-term positive impacts of issued green bonds and energy prices and the negative impact of geopolitical risk on the wind energy consumption. In contrast, geopolitical risk and energy prices have no significant short-term impacts on solar energy consumption in Japan. Solar energy and hydro energy experienced the most considerable impact from issuance of green bonds in Japan. Moreover, a unidirectional causal relationship runs from green bonds and geopolitical risk to wind, solar, and hydro-energy consumption. At the same time, a bidirectional linkage exists between energy prices and green energy (solar, wind, and hydro) consumption in Japan. As practical policies, Japan should try to develop green bond market and promote digital green financing tools that are more resilient and adaptable to the post–COVID-19 era.