Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia Production
This study seeks to investigate how distributed ledger technology can be applied to the green bond market. Second, this study examines how green bonds can finance the suck cost of decarbonizing the ammonia industry. Third, this study seeks to forecast the spot price of ammonia. This forecast is rel...
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| Format: | Article |
| Language: | English |
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Bon View Publishing Pte Ltd.
2023-12-01
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| Series: | Green and Low-Carbon Economy |
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| Online Access: | https://ojs.bonviewpress.com/index.php/GLCE/article/view/1120 |
| _version_ | 1797268859650048000 |
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| author | Don Charles |
| author_facet | Don Charles |
| author_sort | Don Charles |
| collection | DOAJ |
| description |
This study seeks to investigate how distributed ledger technology can be applied to the green bond market. Second, this study examines how green bonds can finance the suck cost of decarbonizing the ammonia industry. Third, this study seeks to forecast the spot price of ammonia. This forecast is relevant since the bond’s coupon should be indexed and linked to the price of ammonia. The proposed tokenized indexed-green bond is a new idea that leverages the technologies of distributed ledgers, indexation, and green bonds. No study to current date has undertaken such research that integrates these technologies to fund the decarbonization of the ammonia industry. Data was collected on the spot price of ammonia from the Central Bank of Trinidad and Tobago online database at the monthly frequency over the January 1991 to June 2023 period. The applied forecasting methodology was a hybrid framework combining Particle Swarm Optimization and Support Vector Regression. This study found that an out-of-sample forecast for ammonia prices would be US$438.89/ton in the 1st quarter, US$289.99/ton by the 2nd quarter, US$448.30/ton by the 3rd quarter, and US$331.57/ton by the 4th quarter. The decarbonization of the ammonia industry is technically possible. Economically, it would involve leveraging several technologies such as green bond financing, tokenization, and indexation.
Received: 26 May 2023 | Revised: 1 September 2023 | Accepted: 3 December 2023
Conflicts of Interest
The author declares that he has no conflicts of interest to this work.
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| first_indexed | 2024-04-25T01:39:11Z |
| format | Article |
| id | doaj.art-9d22aec7eb5846b4b10818d8ad53b50a |
| institution | Directory Open Access Journal |
| issn | 2972-3787 |
| language | English |
| last_indexed | 2024-04-25T01:39:11Z |
| publishDate | 2023-12-01 |
| publisher | Bon View Publishing Pte Ltd. |
| record_format | Article |
| series | Green and Low-Carbon Economy |
| spelling | doaj.art-9d22aec7eb5846b4b10818d8ad53b50a2024-03-08T08:15:09ZengBon View Publishing Pte Ltd.Green and Low-Carbon Economy2972-37872023-12-0110.47852/bonviewGLCE32021120Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia ProductionDon Charles0Point Fortin, Trinidad and Tobago This study seeks to investigate how distributed ledger technology can be applied to the green bond market. Second, this study examines how green bonds can finance the suck cost of decarbonizing the ammonia industry. Third, this study seeks to forecast the spot price of ammonia. This forecast is relevant since the bond’s coupon should be indexed and linked to the price of ammonia. The proposed tokenized indexed-green bond is a new idea that leverages the technologies of distributed ledgers, indexation, and green bonds. No study to current date has undertaken such research that integrates these technologies to fund the decarbonization of the ammonia industry. Data was collected on the spot price of ammonia from the Central Bank of Trinidad and Tobago online database at the monthly frequency over the January 1991 to June 2023 period. The applied forecasting methodology was a hybrid framework combining Particle Swarm Optimization and Support Vector Regression. This study found that an out-of-sample forecast for ammonia prices would be US$438.89/ton in the 1st quarter, US$289.99/ton by the 2nd quarter, US$448.30/ton by the 3rd quarter, and US$331.57/ton by the 4th quarter. The decarbonization of the ammonia industry is technically possible. Economically, it would involve leveraging several technologies such as green bond financing, tokenization, and indexation. Received: 26 May 2023 | Revised: 1 September 2023 | Accepted: 3 December 2023 Conflicts of Interest The author declares that he has no conflicts of interest to this work. https://ojs.bonviewpress.com/index.php/GLCE/article/view/1120green bondstokenizationdistributed ledger technologyammonia pricesdecarbonization |
| spellingShingle | Don Charles Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia Production Green and Low-Carbon Economy green bonds tokenization distributed ledger technology ammonia prices decarbonization |
| title | Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia Production |
| title_full | Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia Production |
| title_fullStr | Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia Production |
| title_full_unstemmed | Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia Production |
| title_short | Tokenized Indexed-Green Bonds: Funding the Decarbonisation of Ammonia Production |
| title_sort | tokenized indexed green bonds funding the decarbonisation of ammonia production |
| topic | green bonds tokenization distributed ledger technology ammonia prices decarbonization |
| url | https://ojs.bonviewpress.com/index.php/GLCE/article/view/1120 |
| work_keys_str_mv | AT doncharles tokenizedindexedgreenbondsfundingthedecarbonisationofammoniaproduction |