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Green bonds markets and renewable energy development: Policy integration for achieving carbon neutrality

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  • Wang, Yang
  • Taghizadeh-Hesary, Farhad

Abstract

Considering the importance of developing renewable energy consumption to reduce the threat of climate change, this study attempts to evaluate the impacts of green bonds and the development of wind, hydro, and solar energy in a sample of 15 member economies of the Organisation for Economic Co-operation and Development (OECD). It employs the fully modified OLS (FMOLS) technique based on data from 2010 to 2020. The estimations show that issued green bonds increase wind and hydro-energy consumption in OECD countries. At the same time, green bonds do not significantly impact solar energy deployment in these economies. The central practical integrated policies recommended by this study include developing a digital green bond market, establishing a green bond issuance network (GBIN), implementing an international carbon tax policy, and planning to achieve green economic recovery through the green bond market development.

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  • Wang, Yang & Taghizadeh-Hesary, Farhad, 2023. "Green bonds markets and renewable energy development: Policy integration for achieving carbon neutrality," Energy Economics, Elsevier, vol. 123(C).
    • Handle: RePEc:eee:eneeco:v:123:y:2023:i:c:s0140988323002232
    DOI: 10.1016/j.eneco.2023.106725
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    2. Mingbo Zheng & Gen-Fu Feng & Chun-Ping Chang, 2023. "Is green finance capable of promoting renewable energy technology? Empirical investigation for 64 economies worldwide," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 483-510, June.
    3. Li, Baolin & Wang, Jia & Nassani, Abdelmohsen A. & Binsaeed, Rima H. & Li, Zeyun, 2023. "The future of Green energy: A panel study on the role of renewable resources in the transition to a Green economy," Energy Economics, Elsevier, vol. 127(PB).

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    More about this item

    Keywords

    Green bonds; Green finance; Green energy resources; OECD; FMOLS estimation;
    All these keywords.

    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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