Towards net zero: Implications of environmental regulations on green finance

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-03-25 DOI:10.1016/j.frl.2025.107299

Md Al Mamun , Sabri Boubaker , Md Zakir Hassan , Riadh Manita

引用次数: 0

Abstract

The 2024 IPCC (Intergovernmental Panel on Climate Change) report highlights that financing is a major concern in achieving the net zero goal. This paper studies the impact of environmental regulations and policies adopted by countries in promoting green finance. Using a large sample of 42 countries, we show that environmental regulations and green finance policies significantly boost the size and issuance of green finance instruments both by corporate and government issuers. Moreover, these regulations and policies enhance the longevity and attractiveness of green bonds issued by various economic agents, both in the short and long run. The effect of environmental regulations and policies on green finance is particularly pronounced in countries with lower geopolitical risk, low energy security, and higher energy needs per dollar of GDP. Our results remain robust under the conditions of short-run heterogeneity, long-run homogeneity, and cross-sectional dependence in the sample.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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