Does green financing help to improve environmental & social responsibility? Designing SDG framework through advanced quantile modelling

Avik Sinha, Shekhar Mishra, Arshian Sharif, Larisa Yarovaya*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

205 Citations (Scopus)

Abstract

Striving to achieve the Sustainable Development Goals (SDGs), countries are increasingly embracing a sustainable financing mechanism via green bond financing. Green bonds have attracted the attention of the industrial sector and policymakers, however, the impact of green bond financing on environmental and social sustainability has not been confirmed. There is no empirical evidence on how this financial product can contribute to achieving the goals set out in Agenda 2030. In this study, we empirically analyze the impact of green bond financing on environmental and social sustainability by considering the S&P 500 Global Green Bond Index and S&P 500 Environmental and Social Responsibility Index, from October 1, 2010 to 31st July 2020 using a combination of Quantile-on-Quantile Regression and Wavelet Multiscale Decomposition approaches. Our results reveal that green financing mechanisms might have gradual negative transformational impacts on environmental and social responsibility. Furthermore, we attempt to design a policy framework to address the relevant SDG objectives.

Original languageEnglish
Article number112751
JournalJournal of Environmental Management
Volume292
DOIs
Publication statusPublished - 15 Aug 2021
Externally publishedYes

Keywords

  • Agenda 2030
  • Environmental and social responsibility
  • Green bonds
  • Green financing
  • Quantile
  • Wavelet

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