Money grows on green energy: Financing a sustainable power future

This research aims to estimate the relationship between green bond financing and the OECD nations' performance on the renewable energy indices. The study attempted to quantify the relationship between concepts by analyzing data from OECD countries for 2011–2019. Padroni unit root test, FMOLS, a...

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Main Authors: Fangzhou Yang, Wenshu Liu, Yuqing Zhang, Guoxing Yang, Talu wala
Format: Article
Language:English
Published: Elsevier 2024-04-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844024043846
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author Fangzhou Yang
Wenshu Liu
Yuqing Zhang
Guoxing Yang
Talu wala
author_facet Fangzhou Yang
Wenshu Liu
Yuqing Zhang
Guoxing Yang
Talu wala
author_sort Fangzhou Yang
collection DOAJ
description This research aims to estimate the relationship between green bond financing and the OECD nations' performance on the renewable energy indices. The study attempted to quantify the relationship between concepts by analyzing data from OECD countries for 2011–2019. Padroni unit root test, FMOLS, and DOLS method provide evidence for the study's results and convey broad policy implications on this important topic. The robustness is consequently examined through a long-term sensitivity analysis employing the FMOLS, and green bond financing nexus concerning the renewable energy indices is shown for comparison. The study showed that financing of green bonds had a predictable impact on renewable energy indices variables. Green bonds' unequal implications for renewable energy measures across the study period bear out this interpretation. The study's findings call for full suppot from government institutions, energy agencies, and departments to optimize energy efficiency, as green bond financing played a 32% role in OECD nation's renewable energy index constructions and increased per unit improvement in renewable energy sources by 9.6%. The research offers many policy recommendations for improving energy efficiency through renewable energy generation. Recent studies extend and contribute to the existing body of literature, although the scientific discussion on this subject matter still needs to be more detailed and understudied. Financial unpredictability may be transformed into a tremendous opportunity if the renewable energy business is appropriately regulated.
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spelling doaj.art-c060ce7ceb0e4e5ea02fff704c5658ff2024-03-29T05:50:37ZengElsevierHeliyon2405-84402024-04-01107e28353Money grows on green energy: Financing a sustainable power futureFangzhou Yang0Wenshu Liu1Yuqing Zhang2Guoxing Yang3Talu wala4Business School, Monash University, Melbourne, 3800, Australia; Corresponding author.School of Ethnology and Sociology, MUC, Minzu University of China, Beijing, 100081 ChinaResearch Center for Fintech, Zhejiang Labboratory, Hangzhou, 215000 ChinaMonash Art, Design and Architecture, Monash University, Melbourne, 3800 AustraliaSchool of Business Administration, Xi'an Eurasia University, ChinaThis research aims to estimate the relationship between green bond financing and the OECD nations' performance on the renewable energy indices. The study attempted to quantify the relationship between concepts by analyzing data from OECD countries for 2011–2019. Padroni unit root test, FMOLS, and DOLS method provide evidence for the study's results and convey broad policy implications on this important topic. The robustness is consequently examined through a long-term sensitivity analysis employing the FMOLS, and green bond financing nexus concerning the renewable energy indices is shown for comparison. The study showed that financing of green bonds had a predictable impact on renewable energy indices variables. Green bonds' unequal implications for renewable energy measures across the study period bear out this interpretation. The study's findings call for full suppot from government institutions, energy agencies, and departments to optimize energy efficiency, as green bond financing played a 32% role in OECD nation's renewable energy index constructions and increased per unit improvement in renewable energy sources by 9.6%. The research offers many policy recommendations for improving energy efficiency through renewable energy generation. Recent studies extend and contribute to the existing body of literature, although the scientific discussion on this subject matter still needs to be more detailed and understudied. Financial unpredictability may be transformed into a tremendous opportunity if the renewable energy business is appropriately regulated.http://www.sciencedirect.com/science/article/pii/S2405844024043846Green energySustainable power futureRenewable energy indicesOECD nation's
spellingShingle Fangzhou Yang
Wenshu Liu
Yuqing Zhang
Guoxing Yang
Talu wala
Money grows on green energy: Financing a sustainable power future
Heliyon
Green energy
Sustainable power future
Renewable energy indices
OECD nation's
title Money grows on green energy: Financing a sustainable power future
title_full Money grows on green energy: Financing a sustainable power future
title_fullStr Money grows on green energy: Financing a sustainable power future
title_full_unstemmed Money grows on green energy: Financing a sustainable power future
title_short Money grows on green energy: Financing a sustainable power future
title_sort money grows on green energy financing a sustainable power future
topic Green energy
Sustainable power future
Renewable energy indices
OECD nation's
url http://www.sciencedirect.com/science/article/pii/S2405844024043846
work_keys_str_mv AT fangzhouyang moneygrowsongreenenergyfinancingasustainablepowerfuture
AT wenshuliu moneygrowsongreenenergyfinancingasustainablepowerfuture
AT yuqingzhang moneygrowsongreenenergyfinancingasustainablepowerfuture
AT guoxingyang moneygrowsongreenenergyfinancingasustainablepowerfuture
AT taluwala moneygrowsongreenenergyfinancingasustainablepowerfuture