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The Impact of Digital Finance on Clean Energy and Green Bonds through the Dynamics of Spillover

Author

Listed:
  • Assem Urekeshova

    (L.N.Gumilyov Eurasian National University, Astana, Kazakhstan,)

  • Zhibek Rakhmetulina

    (N.Gumilyov Eurasian National University, Astana, Kazakhstan,)

  • Igor Dubina

    (Altai State University, Barnaul, Russia,)

  • Sergey Evgenievich Barykin

    (Graduate School of Service and Trade, Peter the Great St. Petersburg Polytechnic University, 195251 St. Petersburg, Russia,)

  • Angela Bahauovna Mottaeva

    (Department of Management and Innovations, Financial University under the Government of the Russian Federation, 125993, Moscow, Russia,)

  • Shakizada Uteulievna Niyazbekova

    (Research and Education Center Sustainable Development; Moscow Witte University, 119454, Moscow, Russia; Department of Management, Financial University under the Government of the Russian Federation, 124167 Moscow, Russia.)

Abstract

Investigated are the effects of digital finance on green bonds and renewable energy. Therefore, the primary objective of this research is to employ a novel time-varying causality test to establish the causal link between green technology, clean energy, digital finance, and environmental responsibility. Study analyzed data from 2001 to 2019 to infer the China region. In addition, for robustness, a spillover dynamic connectedness model is implemented. The empirical results show that the spillovers shocks analysis come from clean energy to digital finance index(30.544%), followed by propagation from clean energy to green economic index (30.544%). Because depending on economic events, the dynamic total connectedness across assets changes over time. Long-term Environmental costs are dramatically reduced by 0.68% with every 1% increase in clean energy consumption. Yet, the entire period from clean energy to digital&finance is marked by heightened volatility and causal relevance. The study finds that after the local economy and environmental governance, institutional environment has the second-largest impact on the market expansion for green bonds. The findings add to our understanding of the risk profile of clean energy stocks and emphasise the need for stable, predictable laws in order to increase the marketability of clean energy stocks.

Suggested Citation

  • Assem Urekeshova & Zhibek Rakhmetulina & Igor Dubina & Sergey Evgenievich Barykin & Angela Bahauovna Mottaeva & Shakizada Uteulievna Niyazbekova, 2023. "The Impact of Digital Finance on Clean Energy and Green Bonds through the Dynamics of Spillover," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 441-452, March.
    • Handle: RePEc:eco:journ2:2023-02-50
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    More about this item

    Keywords

    Digital finance; Dynamic connectedness; Spillover dynamic connectedness; Green bonds;
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E39 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Other
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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