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Enhancing green economic recovery through green bonds financing and energy efficiency investments


  • Zhao, Linhai
  • Chau, Ka Yin
  • Tran, Trung Kien
  • Sadiq, Muhammad
  • Xuyen, Nguyen Thi My
  • Phan, Thi Thu Hien


This study investigates the effect of green-bond financing on energy efficiency investment for green economic recovery. The fuzzy Analytic Hierarchy Process (AHP) technique was used to achieve the research objective. The study’s findings showed that green bonds are currently the primary financing source for energy efficiency projects, enhancing economic growth by 4.9% and potentially increasing green economic recovery by approximately 17% per annum. The fuzzy analysis technique and alternative models of fuzzy modeling were applied in this study. An alternative to project-based financing is energy performance contracts (EPCs). Green bonds also invest in public and private funds for energy efficiency and economic growth. Alternatively, such bonds may finance environmental initiatives or companies. Testing energy-efficiency projects with low payback rates may be expensive. Expanding the green economy through green bonds is essential for financing to successfully promote energy efficiency finance and green growth. This study also has policy implications for stakeholders.

Suggested Citation

  • Zhao, Linhai & Chau, Ka Yin & Tran, Trung Kien & Sadiq, Muhammad & Xuyen, Nguyen Thi My & Phan, Thi Thu Hien, 2022. "Enhancing green economic recovery through green bonds financing and energy efficiency investments," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 488-501.
  • Handle: RePEc:eee:ecanpo:v:76:y:2022:i:c:p:488-501
    DOI: 10.1016/j.eap.2022.08.019

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