IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v97y2025ics1059056024008232.html
   My bibliography  Save this article

Resilience or returns: Assessing green equity index performance across market regimes

Author

Listed:
  • Duong, An Thi Thuy

Abstract

Amid growing concerns about climate change and sustainable development, this study examines the performance of green equity indices versus conventional indices in various market regimes from 2002 to 2024. By incorporating both developed and emerging markets and utilizing the Markov regime-switching model, this paper offers a dynamic perspective on index performance across varying market regimes. The findings reveal that green indices in developed markets demonstrate resilience, with lower or comparable volatility, less negative returns during downturns, and longer durations in both bearish and bullish regimes compared to conventional indices. In developing markets, green indices generally exhibit higher volatility and mixed performance. This research highlights the importance of tailoring sustainable investment strategies and policies to regional market condition, enriching the understanding of the global sustainable investment landscape. This study emphasizes the potential of green investments to enhance financial stability, corporate innovation, and climate governance practices.

Suggested Citation

  • Duong, An Thi Thuy, 2025. "Resilience or returns: Assessing green equity index performance across market regimes," International Review of Economics & Finance, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:reveco:v:97:y:2025:i:c:s1059056024008232
    DOI: 10.1016/j.iref.2024.103831
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024008232
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.103831?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Green equity index; Resilience; Returns; Volatility; Markov regime switching model;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:97:y:2025:i:c:s1059056024008232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.