Contributions of Green Finance to Sustainable Economy: A Panel Data Analysis

Authors : Havane Tembelo, Mustafa Özyeşil

Pages : 244-252

View : 35 | Download : 52

Publication Date : 2024-06-30

Article Type : Research Paper

Abstract :This study highlights that green finance plays an important role in the field of sustainability and serves as a critical tool in achieving sustainability goals, especially in sectors such as food production, health, nutrition and ecological agriculture. The main purpose of the study is to examine how green financing plays a role in achieving sustainability goals and to analyze the impact of green bond issuances on global stock returns. This study investigates the impact of green bonds issued worldwide between 2010 and 2023 on stock returns. Our study uses a large dataset containing stock indices of different countries using panel data analysis. Main concentration of this research is investigating a relationship between green bond issuances and stock returns and impact of economic growth rate on relationship between these two variables. Amprical evidence shows that there is a significant relationship between green bond issuances and global stock returns. This result reflects that green financing is an important tool in achieving sustainability goals and that green bond issuances increase investors\' interest in environmentally responsible investments. The increasing trend observed in green bond issuances shows that financial markets are used effectively in combating environmental problems. it has been also observed that the economic growth rate does not affect the relationship between green bond issuances and stock returns. This shows that the relationship between green bond issuances and stock returns is independent of economic growth dynamics. The green financing effect occurs independently of economic growth dynamics. The results of this study show that green finance plays an important role in the field of sustainability and that financial markets have the potential to provide solutions to environmental problems. Increasing green bond issuances show that investments sensitive to environmental issues are encouraged and that the financial sector plays a critical role in achieving sustainability goals. Highlighting the contributions of green finance to a sustainable economy highlights the need for policies and practices to support broader sustainability efforts in the future.
Keywords : Yeşil Tahvil, Hisse Senedi Piyasaları, Çevresel Sürdürülebilirlik, Finansal Etkiler, Panel Veri