Green bonds and the energy transition: From instrumental use to intrinsic value

Using bibliometric techniques, we classify green bonds literature into three main clusters: (i) asset-pricing research examining green bonds' connectedness with other assets; (ii) corporate-finance studies on the determinants of green bond issuance; and (iii) corporate-finance research on their environmental effects, such as carbon-emission reductions and renewable-energy deployment. Early studies primarily focused on pricing dynamics and market connectedness, whereas recent research emphasizes the intrinsic environmental value of green bonds, particularly their role in financing renewable-energy projects and supporting climate-policy objectives. This review integrates these strands into a unified energy-finance framework. On the theoretical side, we map green bond studies along a spectrum from instrumental to intrinsic value. On the methodological side, we synthesize the principal identification strategies used to address endogeneity, a challenge central to establishing credible links between green-bond financing and energy-transition outcomes. Building on these foundations, we set out a future research agenda that highlights underexplored issues concerning cross-market dynamics during energy crises, the effectiveness of green bonds in accelerating decarbonization, and the policy implications for energy-market regulators. Taken together, our findings provide a structured foundation for advancing research on green bonds within energy economics and climate finance.