The impact of financial tools in environmental degradation management: the relationship between Co2 emission and ESG funds

Gülfen Tuna (), Kaan Türkay (), Saim Saner Çiftyildiz () and Hülya Çelik ()
Additional contact information
Gülfen Tuna: Sakarya University, Esentepe Campus
Kaan Türkay: Sakarya University
Saim Saner Çiftyildiz: Sakarya University of Applied Sciences
Hülya Çelik: Sakarya University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 6, No 53, 14956 pages

Abstract: Abstract This study aims to determine whether ESG funds can be used as an effective tool for environmental sustainability. ESG funds, which first appeared in the 2000s and were exported by environmentally friendly companies, are among the most effective tools for increasing firm value and managing environmental degradation. The causality relationship between the ESG funds, one of the environmentally friendly investment instruments, and the CO2 emission values, which are used as an environmental degradation criterion, was investigated in this study. The study used 209 daily data sets from July 31, 2020, to May 28, 2021. The symmetric developed by Hacker and Hatemi-J (Appl Econ 38:1489–1500, 2006), the asymmetric developed by Hatemi-J (Empir Econ 43:447–456, 2012), and time-varying asymmetric causality tests were used as models. According to the study results, while there is no symmetric causality between CO2 emissions and ESG funds, there is causality between CO2 emissions and ESG funds prices for negative shocks and between CO2 emissions and ESG funds trade volume for positive shocks. The results of a time-varying asymmetric causality test also support that this causality relationship varies by period. As a result, ESG funds can be used as a strategic financial tool to improve environmental quality during the COVID-19 period; however, this may vary for different sub-sample periods.

Keywords: CO2 emission; Environmental degradation; ESG funds; Sustainable finance (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-023-03229-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:endesu:v:26:y:2024:i:6:d:10.1007_s10668-023-03229-6

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-023-03229-6

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().