Determining dependence, centrality, and dynamic networks between green bonds and financial markets.
J Environ Manage
; 318: 115618, 2022 Sep 15.
Article
in English
| MEDLINE | ID: covidwho-1914593
ABSTRACT
We adopted a network approach to examine the dependence between green bonds and financial markets. We first created a static dependency network for a given set of variables using partial correlations. Secondly, to evaluate the centrality of the variables, we illustrated with-in system connections in a minimum spanning tree (MST). Afterward, rolling-window estimations are applied in both dependency and centrality networks for indicating time variations. Using the data spanning January 3, 2011 to October 30, 2020, we found that green bonds and commodity index had positive dependence on other financial markets and are system-wide net contributors before and after COVID-19. Time-varying dynamics illustrated heightened system integration, particularly during the crisis periods. The centrality networks reiterated the leading role of green bonds and commodity index pre- and post-COVID. Finally, rolling window analysis ascertained system dependence, centrality, and dynamic networks between green bonds and financial markets where green bond sustained their positive dependence all over the sample period. Green bonds' persistent dependence and centrality enticed several implications for policymakers, regulators, investors, and financial market participants.
Keywords
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Main subject:
COVID-19
Type of study:
Experimental Studies
Topics:
Long Covid
Limits:
Humans
Language:
English
Journal:
J Environ Manage
Year:
2022
Document Type:
Article
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