2022
DOI: 10.1007/s11356-022-24623-z
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Green bonds’ liquidity in COVID-19 and low carbon investments in China: A stochastic trend analysis

Abstract: Central banks and regulators increasingly consider climate-related financial risks (CRFR) relevant to their responsibilities for maintaining financial stability and using daily data from 2016 to 2021 for China. Specifically, we used the S&P Green Bond Price Index, the Solactive Global Solar Price Index, the Solactive Global Wind Price Index, and the S&P Global Clean Energy and Carbon Price Index as our data set. We use the TVP-VAR method to probe return spillovers and interconnectedness. We test several portfo… Show more

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Cited by 5 publications
(3 citation statements)
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“…The growth rate has a significant effect on hydropower, wind, solar, and nuclear energies in the short and long term. Another study by [40] checked the link between RWE consumption, financial development, and economic growth with the help of the Granger causality test. The results show that there is a unidirectional causality from financial development to RWE consumption in China and eastern China.…”
Section: Literature Reviewmentioning
confidence: 99%
“…The growth rate has a significant effect on hydropower, wind, solar, and nuclear energies in the short and long term. Another study by [40] checked the link between RWE consumption, financial development, and economic growth with the help of the Granger causality test. The results show that there is a unidirectional causality from financial development to RWE consumption in China and eastern China.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Similarly, the study conducted by [50][51][52][53][54] contributed to understanding the connectivity, risk transmission, and portfolio implications of green bonds, carbon pricing, and renewable energy stocks, among others. They highlight the importance of considering socially responsible investment practices, the potential of green bonds as hedging and diversification instruments, and the role of these assets in the global financial recovery and transition to a low-carbon economy.…”
Section: Trunkmentioning
confidence: 99%
“…For instance, a World Bank study discovered that while an increase in oil price can have a short-term negative effect on the economies of nations that are net oil importers, this impact can be reduced over time by investments in domestic oil production and actions to increase energy efficiency. Past studies have noted that both the implementation of climate change policies and the move toward using renewable energy sources contribute to maintaining steady economic growth (Wang and Chang, 2023).…”
Section: Table1 Comparing Correlationsmentioning
confidence: 99%