Green finance and decarbonization: Evidence from around the world

Md Al Mamun, Sabri Boubaker and Duc Khuong Nguyen

Finance Research Letters, 2022, vol. 46, issue PB

Abstract: This paper studies the effect of green finance on decarbonization. Using a large sample of 46 countries, we show that green finance significantly reduces carbon emissions in the short and long run. This effect is driven by green bonds issued to support waste and pollution control and improve energy efficiency. The impact of green finance on carbon emissions is more pronounced in developed credit markets and economies with higher innovation success and higher climate change exposure. Our results are robust under the conditions of short-run and long-run homogeneity and the cross-sectional dependence in the sample.

Keywords: Green finance; Green bonds; Credit and equity markets; Carbon emissions; Innovation (search for similar items in EconPapers)
JEL-codes: F21 P48 Q42 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322001040
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Green Finance and Decarbonization: Evidence from around the World (2022)
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:finlet:v:46:y:2022:i:pb:s1544612322001040

DOI: 10.1016/j.frl.2022.102807

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().