Green bond in China: An effective hedge against global supply chain pressure?

Fanna Kong, Zhuoqiong Gao and Camelia Oprean-Stan

Energy Economics, 2023, vol. 128, issue C

Abstract: Investigating green bonds' hedging ability against global supply chain disruptions is crucial to maximising investment returns. This analysis innnovatively uses the sub-sample technique to recognise the time-dependant transmission mechanism between green bonds in China (CGB) and global supply chain pressure (GSCP), which further resolves if China's green bond is an effective hedge against global supply chain pressure. The conclusion ascertains that positive and negative impacts exist from GSCP to CGB, whereas the favourable one suggests that China's green bond is an effective hedge under high global supply chain stresses. However, an adverse effect indicates that low GSCP might accompany the development of a green bond market due to climate and environmental policies. In turn, GSCP is positively and negatively affected by CGB, and the favourable one reveals that the green bond market in China could reflect the condition of the global supply chain, but the adverse one cannot draw a similar conclusion. Under the background of the complex international economic situation and China's proposed carbon peaking and carbon neutrality goals, this discussion would provide significant suggestions for the public, enterprise and country.

Keywords: Green bond; Global supply chain pressure; Hedging ability; Time-varying; China (search for similar items in EconPapers)
JEL-codes: C32 F15 G12 Q50 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988323006655
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:128:y:2023:i:c:s0140988323006655

DOI: 10.1016/j.eneco.2023.107167

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().