Green financing, financial uncertainty, geopolitical risk, and oil prices volatility

Fanyi Wang, Wanying Ma, Nawazish Mirza and Mehmet Altuntaş

Resources Policy, 2023, vol. 83, issue C

Abstract: This research explores the correlation between green investment, geopolitical risk, financial uncertainty, oil price volatility, and green bond investment globally from 1985 to 2020. We analyze long-term and short-term associations among the variables using the Quantile Autoregressive Distributed Lagged (QARDL) model. The QARDL model confirms a long-term relationship between the key variables and green investment. The error correction parameter indicates that financial stress and geopolitical risk negatively impact green investment. In contrast, oil price volatility and clean energy investments positively influence green investment. The Wald test affirms parameter constancy in both the short and long run. However, the study only considers four green bond investment trend determinants and lacks cross-country or regional comparisons. The findings provide insights into the interplay between the study variables and highlight the need for future research to consider broader determinants and include cross-regional comparisons for a comprehensive understanding of green bond investment trends.

Keywords: Financial stress index; Geopolitical risk; Green financing; Oil price volatility; QARDL (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723004270
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:jrpoli:v:83:y:2023:i:c:s0301420723004270

DOI: 10.1016/j.resourpol.2023.103716

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

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