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Central bank independence–green investment nexus: Is energy inflation a barrier or stimulator?

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  • Saidi, Hichem
  • Ozturk, Ilhan
  • Hakimi, Abdelaziz
  • Ullah, Sana

Abstract

Investing in green initiatives has become critical not only for improving environmental quality but also for providing clean and green energy sources. The central bank’s policy rate and energy inflation are critical in determining the level of green investment within the economy. Therefore, the primary motive of the analysis is to investigate the influence of central bank independence and energy inflation on green investment using 35 global economies from 1993 to 2023. In order to empirically investigate the connection between the variables, we employ the MMQR. The outcomes of the MMQR highlight that central bank independence fosters green investment at its medium and highest levels. In addition, energy inflation proves vital in enhancing the green investment from the 10th to the 70th quantiles. We have also controlled several factors, such as CO2e, political stability, and the internet, which play a vital role in promoting green investment at all levels. In contrast, economic growth has an adverse influence on green investment at all levels.

Suggested Citation

  • Saidi, Hichem & Ozturk, Ilhan & Hakimi, Abdelaziz & Ullah, Sana, 2026. "Central bank independence–green investment nexus: Is energy inflation a barrier or stimulator?," Research in International Business and Finance, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:riibaf:v:81:y:2026:i:c:s0275531925004453
    DOI: 10.1016/j.ribaf.2025.103189
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