Green bonds, sustainable development and environmental policy in the European Union carbon market

Leitão, João; Ferreira, Joaquim J.; González, Ernesto D.R. Santibañez

doi:10.1002/bse.2733

Cited by 69 publications

(25 citation statements)

References 97 publications

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“…The energy transformation requires banking institutions to fundamentally change the way they operate, and thus time needed to implement a new strategy for their lending policy. It means expansion of a green loans offer, as well as their support in organizing a green bonds issue [31,92]. Taking into account the objective that Europe, which is to become the first continent to achieve net zero greenhouse gas emissions in 2050 [93], a change in the pace of green lending transformation in Polish banks must also take place.…”

Section: Results From the Survey Research (Stage 1)mentioning

confidence: 99%

“…Empirical studies have also indicated that the main channel of "green" financing is a bank loan, which is more competitive than traditional credit products. Commercial banks in Poland, supporting the energy transformation, also mediate in the procedure of bond issues, including green bonds, or joining public-private partnerships [31]. As far as possible, it also seems that banks will expand their offer of "green" financing, as long as the pandemic crisis does not permanently affect their financial stability and the financial condition of capital recipients.…”

Section: Discussionmentioning

confidence: 99%

“…The additional justification is also the assumption that greening investments in EU member states will be a durable procedure, concentrated on gaining capital from nonbanking institutions [25,31,32]. Probing the role of banks in this process seems to complement the knowledge of green financing of investments in the European Union, which determines the originality of the undertaken research topic.…”

Section: Introductionmentioning

confidence: 99%

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Responsible Lending Policy of Green Investments in the Energy Sector in Poland

Pyka

Nocoń

2021

Energies

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The paper concerns the issue of responsible involvement of commercial banks in Poland in green financing of the energy sector. The main reason for undertaking this topic is the observed increased interest of domestic banks in green financing of investments on the energy market in Poland. Therefore, the main objective are to explore the determinants of changes in the level and structure of bank loans under the influence of green investments in the energy sector in Poland. The article verifies the research hypothesis which assumes that an increase in financing green investments by bank loans in the energy market in Poland requires strengthening the synergy of responsible financing of sustainable development of the economy. For this purpose, a two-stage concept of the empirical research was adopted. On the first stage, questionnaire surveys were conducted among the largest Polish commercial banks to examine the respondents’ acceptance degree of the concept of sustainable financing and greening the loan portfolio. On the second stage, case studies were analyzed along with the analysis of selected secondary quantitative data. It was proven that commercial banks in Poland increase their commitment to sustainable financing, which is observed in the sectorally progressing process of “greening” the credit offer. There is also a noticeable change in their approach to social responsibility, especially in the context of the energy market, where financing of traditional, ecologically harmful projects is still dominant. However, this trend is slowly being reversed, towards supporting investments in the area of modern, environmentally-friendly energy solutions. However, “greening” of loan portfolios in the native banking sector requires a responsible lending policy based on various complex business decisions. Increasing their pro-ecological awareness of financing the economy is only a prerequisite, albeit inadequate, of further energy transformation in Poland.

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Section: Results From the Survey Research (Stage 1)mentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Responsible Lending Policy of Green Investments in the Energy Sector in Poland

Pyka

Nocoń

2021

Energies

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“…“Green bonds are bonds with a defined use of proceeds toward mitigating and adapting to climate change and solving environmental problems.” (Deng et al, 2020, p.57). Previous studies examine various aspects of a green bond, such as determinants of the offer size and issuance of a green bond (Barua & Chiesa, 2019; Russo et al, 2021), whether a green bond is a different class asset (Ferrer et al, 2021), reasons behind the popularity of green bonds (Cao et al, 2021), and the effectiveness of green bonds in reducing pollution (Fatica & Panzica, 2021; Leitao et al, 2021). Elettra and Rossella (2019) explain the green bond yield premium (greenium)—the difference between yields on a conventional bond and a green bond with the same characteristics.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The impact of air pollution on the cost of debt financing: Evidence from the bond market

Tan

Chan

2021

Bus Strat Env

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This study investigates whether bond markets reflect firms' exposure to air pollution through an increased cost of debt financing; and, if so, whether firms can mitigate this air pollution penalty via effective governance and active monitoring. Using 1067 bonds issued by Chinese firms, we document a positive association between air pollution and the cost of debt financing, and this association is robust and economically meaningful. Specifically, with a one standard deviation increase in air pollution severity, a firm's bond yield spread increases approximately 16% relative to an average bond. Additional analysis suggests that credit risk and financial uncertainty are the transmission channels. Our results also confirm that strengthened corporate governance, active board and external monitoring, and a stabilized economic environment further enhance the impact of air pollution on a firm's cost of debt. Overall, air pollution has a material change in a firm's business strategy in using debt.

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“…Leitao et al analyzed the overall topological characteristics of the global oil international trade network and the evolution of the network structure and used random matrix theory to analyze the complex spatio-temporal dynamics from the national level. e evolution of market adaptability of international oil trade is analyzed from the perspective of demand side [8]. A complex network approach was used to construct the unweighted and weighted complex networks for the 2010 gas trade.…”

Section: Related Workmentioning

confidence: 99%

A Nonlinear Stochastic Matrix Model for the Analysis of the Association between International Trade Growth and Environmental Change

Zhang

2022

Mathematical Problems in Engineering

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This study uses a nonlinear stochastic matrix for an in-depth analysis of the association between international trade growth and environmental change. First, for a class of uncertain stochastic nonlinear time-lag systems, this study investigates its time-lag-related robust stochastic stabilization problem. A memory-free state feedback controller for the system is then obtained to ensure the effectiveness of the system performance. This makes the system more general and the corresponding theoretical results less conservative. Finally, numerical examples are given to further verify the validity and feasibility of the results. The “tariff measure” based on the magnitude of adverse changes in trade policy is not an accurate measure of trade policy uncertainty; the stochastic volatility method measures trade policy uncertainty by including tariff fluctuations that have been communicated in advance in the trade policy uncertainty indicator and fail to identify the different commodities that occur during the current trade friction. The trade policy uncertainty index constructed through textual analysis of newspapers can better reflect the trade policy uncertainty during this trade friction between China and the United States, and the rich time-varying nature can also reflect the alternating changes of tension and détente in economic and trade relations over some time. The analysis of the mechanism reveals that exporters have fewer emission reduction facilities than nonexporters but significantly lower energy consumption intensity for coal and water than nonexporters, reasoning that the mechanism by which exporters are more environmentally friendly than nonexporters lies in their cleaner energy use mix. Following the conclusions of this study, relevant policy recommendations are put forward, specifically the use of more efficient energy sources in the production process and more investment in energy efficiency and emission reduction to combat pollution.

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Green bonds, sustainable development and environmental policy in the European Union carbon market

Cited by 69 publications

References 97 publications

Responsible Lending Policy of Green Investments in the Energy Sector in Poland

Responsible Lending Policy of Green Investments in the Energy Sector in Poland

The impact of air pollution on the cost of debt financing: Evidence from the bond market

A Nonlinear Stochastic Matrix Model for the Analysis of the Association between International Trade Growth and Environmental Change

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