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

Peng Zhou, Wenjie Ding (), Khelifa Mazouz () and Shijie Jin ()
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Wenjie Ding: Business School, Sun Yat-sen University, https://bschool.sysu.edu.cn/en/faculty/1416970.htm
Khelifa Mazouz: Cardiff Business School, Cardiff University
Shijie Jin: Cardiff Business School, Cardiff University

No E2026/10, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: 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.

Keywords: Energy Transition; Green Bonds; Carbon Markets; Clean Energy Finance; Systematic Literature Review (search for similar items in EconPapers)
JEL-codes: G00 G10 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2026-07
New Economics Papers: this item is included in nep-fmk
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