Is there any market state-dependent contribution from Blockchain-enabled solutions to ESG investments? Evidence from conventional and Islamic ESG stocks

Umer Shahzad, Mahdi Ghaemi Asl and Marco Tedeschi ()

International Review of Economics & Finance, 2023, vol. 86, issue C, 139-154

Abstract: We examined the relationship between three Blockchain-based platforms (Advanced Internet Blocks (AIB), Blocktix (TIX), and BlockCDN (BCDN)), and the prominent global ESG-based indexes (S&P Global 1200 ESG Index (ESG) and its shariah-screened counterpart (SESG)).Based on the results of the research conducted between 3/5/2018 and 3/30/2022 reveal that the coherence of BCDN with ESG and SESG investments, strictly higher than AIB and TIX, decreases both by moving from a higher to a lower quantile and from a long-term to a short-term perspective. Additionally, it would be able to illustrate that in a pairwise directional connectedness analysis that excludes AIB-SESG pairs, all Blockchain-enabled innovations make significant contributions to both ESG-screened businesses at normal and bullish market conditions. According to this outcome, by analyzing the entire network of them, only BCDN and AIB could provide the network-transmitting function, respectively, in a bull market and a normal market, demonstrating the market state-dependency of Blockchain-based innovation spillovers. According to these findings, it would be an illusion to expect BCDN (a decentralized CDN trading market) or AIB (a platform that facilitates the use of advanced smart applications) to play a significant role in contributing to the creation of ESG markets and achieving sustainable objectives without putting a particular focus on market conditions. The concluding remarks could be useful for those who work in the field of environmental policy, investors who care about ESG factors, and market regulators.

Keywords: Blockchain; ESG; Stock market; Islamic stocks; Environmental policy (search for similar items in EconPapers)
JEL-codes: D53 O14 Q40 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:86:y:2023:i:c:p:139-154

DOI: 10.1016/j.iref.2023.03.001

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