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The Role of Financial Markets in Energy Transitions

Author

Listed:
  • Magdalena Zioło

    (Institute of Management, Pomeranian University in Słupsk, 76-200 Słupsk, Poland)

  • Iwona Bąk

    (Faculty of Economics, West Pomeranian University of Technology, 70-310 Szczecin, Poland)

  • Anna Spoz

    (Department of Finance and Accountancy, The John Paul II Catholic University of Lublin, 20-950 Lublin, Poland)

Abstract

This review organizes the current state of knowledge on the role of financial markets in energy transition. The originality of the study lies in the delimitation of its scope and diagnosis of research trends concerning the role of financing, innovation, and financial development sources. The study sets out to identify the role of the financial market in the energy transition process and present the state-of-the-art and main research focuses. For this purpose, a literature review was carried out based on the search results from the Web of Science database and using VOSViewer software, version 1.6.20. The analysis of 54 papers in the final sample allowed us to pinpoint the key links between financial markets and energy transition. Capital markets support green initiatives, with green bonds as a primary funding source. Blockchain and fintech technologies also significantly contribute to transition by offering innovative solutions. Additionally, a range of papers examine the costs associated with energy transition and the role of financial instruments in managing these. Regulatory challenges are another significant focus. This comprehensive analysis underscores the multifaceted relationship between financial markets and energy transition, providing insights into the current trends and the critical role of finance in fostering a sustainable future.

Suggested Citation

  • Magdalena Zioło & Iwona Bąk & Anna Spoz, 2024. "The Role of Financial Markets in Energy Transitions," Energies, MDPI, vol. 17(24), pages 1-15, December.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:24:p:6315-:d:1543980
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    2. Rao, Amar & Kumar, Satish, 2025. "Climate resilience through finance: The divergent roles of institutions and markets," Finance Research Letters, Elsevier, vol. 85(PC).

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