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Green bonds' liquidity in COVID-19 and low carbon investments in China: A stochastic trend analysis.
Wang, Yi; Chang, Lei.
  • Wang Y; School of Software & Microelectronics, Peking University, Beijing, 100091, China.
  • Chang L; School of Economics, Peking University, Beijing, 100871, China. chang06@mail.ustc.edu.cn.
Environ Sci Pollut Res Int ; 30(13): 36838-36850, 2023 Mar.
Article in English | MEDLINE | ID: covidwho-2286225
ABSTRACT
Central banks and regulators increasingly consider climate-related financial risks (CRFR) relevant to their responsibilities for maintaining financial stability and using daily data from 2016 to 2021 for China. Specifically, we used the S&P Green Bond Price Index, the Solactive Global Solar Price Index, the Solactive Global Wind Price Index, and the S&P Global Clean Energy and Carbon Price Index as our data set. We use the TVP-VAR method to probe return spillovers and interconnectedness. We test several portfolio strategies, including the minimum variance portfolio, the minimum correlation portfolio, and the more recent minimum connectedness portfolio. However, the evolving policy structure for dealing with CRFR has generally focused on market-based solutions that attempt to address perceived data gaps that preclude the appropriate pricing of CRFR, even though CRFR is thought to have certain distinctive features. Disclosure and openness fall within this category. We propose limiting the approach's influence since CRFR is characterized by extreme attainability. A 'precautionary' financial policy option is presented as an alternative, providing a conceptual foundation for justifying more aggressive financial policy intervention in the present to better cope with these long-term dangers.
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Full text: Available Collection: International databases Database: MEDLINE Main subject: Carbon / COVID-19 Type of study: Prognostic study Limits: Humans Country/Region as subject: Asia Language: English Journal: Environ Sci Pollut Res Int Journal subject: Environmental Health / Toxicology Year: 2023 Document Type: Article Affiliation country: S11356-022-24623-z

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Full text: Available Collection: International databases Database: MEDLINE Main subject: Carbon / COVID-19 Type of study: Prognostic study Limits: Humans Country/Region as subject: Asia Language: English Journal: Environ Sci Pollut Res Int Journal subject: Environmental Health / Toxicology Year: 2023 Document Type: Article Affiliation country: S11356-022-24623-z