Loading…
Green finance and renewable energy: A worldwide evidence
Using a large sample of 44 countries for 2007–2020, we provide evidence that green finance (green bonds) significantly fosters renewable energy production. Our results are robust to addressing cross-sectional dependence concerns, allowing structural breaks, and using several alternative specificatio...
Saved in:
Published in: | Energy economics 2023-02, Vol.118, p.106499, Article 106499 |
---|---|
Main Authors: | , , , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Summary: | Using a large sample of 44 countries for 2007–2020, we provide evidence that green finance (green bonds) significantly fosters renewable energy production. Our results are robust to addressing cross-sectional dependence concerns, allowing structural breaks, and using several alternative specifications and estimation methods. Compared to our baseline findings, the effect is higher for green bonds issued to finance alternative energy. We also find that the existing stock of technological capacity significantly fosters the impact of green finance on renewable energy production, particularly in the long run. The long-run impact of green finance is significant in countries with higher emissions per dollar GDP, higher levels of climate change exposure to the economy and human life, and better-developed credit markets. The effect is more pronounced in countries with low or net zero emission targets and following the post-Paris 2015 agreements.
•Examined green finance's role in renewable energy production.•Green finance significantly foster renewable energy in the short and long-run.•Innovation is a key channel linking green finance and renewable energy.•Impact is more pronounced in countries with higher emissions & climate exposure. |
---|---|
ISSN: | 0140-9883 1873-6181 |
DOI: | 10.1016/j.eneco.2022.106499 |