Asymmetric connectedness between cryptocurrency environment attention index and green assets

Exploring time and frequency linkages of green bond with renewable energy and crypto market

“…In a recent study by Syed et al ( 2022 ) authors examined the asymmetric relationship between economic policy uncertainty, green bonds, and cryptocurrencies, and using NARDL approach authors confirm the existence of an asymmetric association between green bonds, bitcoins, and crypto. Kamal and Hasan ( 2022 ) investigated the impact of the popularity of cryptocurrency on clean energy and green assets using quantile-based regression, and quantile connectedness and confirmed the positive effect of cryptocurrency on equity stocks while in the significant relationship with clean energy stocks and green assets. Using a similar methodology of quantile connectedness (Khalfaoui et al, 2022 ) examined the connectedness between Bitcoins, green markets and economic ambiguity and discovered that global carbon acts as a net receiver of information spillover whereas green assets are the net transmitter of risk.…”

Extreme spillover effect of COVID-19 pandemic-related news and cryptocurrencies on green bond markets: A quantile connectedness analysis

“…The growing importance of research on green bonds in the extant literature can be contextualized into two edifices. First, against the backdrop of climate change concerns, green bonds are increasingly identified as a source of sustainable finance to transform the energy trajectory from dirty energy to clean and green energy sources ( Flammer, 2021 ; Kamal & Hassan, 2022 ; Sartzetakis, 2021 ). Second, a major strand of the literature has explored the suitable characteristics of green bonds for portfolio diversification during times of market turbulence ( Kamal & Hassan, 2022 ; Naeem et al, 2021 ; Reboredo & Ugolini, 2020 ).…”

“…One of these newer financial instruments is the emergence of green bonds that address environmental challenges. Wide-ranging literature has deliberated on the major drivers of green bond markets (e.g., Flammer, 2021 ; Kamal & Hassan, 2022 ). A nascent body of literature has explored the underlying nexus between green bonds and major emerging markets.…”

“…A nascent body of literature has explored the underlying nexus between green bonds and major emerging markets. The diversification benefits of green bonds vary across assets and are popularly demonstrated during turbulent conditions of the market, such as the recent pandemic COVID-19 crisis ( Elsayed, Naifar, Nasreen, & Tiwari, 2022 ; Kamal & Hassan, 2022 ; Khalfaoui, Jabeur, & Dogan, 2022 ).…”

“…Given that green investments are crucial in alleviating climate change risk and providing a means to achieve risk mitigation, examining the co-movement between green bonds and financial markets during different market conditions is essential. Accordingly, few scholars notice cryptocurrency market can add to the diversification of the portfolio in conjunction with green bonds to minimize risks, particularly during the recent COVID-19 pandemic ( Kamal & Hassan, 2022 ; Khalfaoui et al, 2022 ; Le, Abakah, & Tiwari, 2021 ). However, these studies, as abundant as studies on the impact of COVID-19 on financial markets and commodities, have ignored the pandemic media coverage influence, given that COVID-19 has received much attention from the media worldwide.…”