Assessment of impacts of green bonds on renewable energy utilization efficiency

Due to the consumption of renewable natural resources caused by population growth, industrialization, and urbanization, renewable resources' effectiveness has become controversial in recent decades. This paper examines the effect of issued green bonds on the effectiveness of renewable natural resource utilization in 15 selected Asia-Pacific countries during 2012-2021. Conducting the Fully Modified Ordinary Least Squares (FMOLS) estimation, the preliminary results confirmed that the issued green bonds have positive and statistically significant impacts on renewable natural resource utilization efficiency in the short-term and long-term. However, the magnitude of the impacts is more extensive in the long-term context. Urbanization has a negative shortterm coefficient, while it positively impacts the natural resource utilization efficiency in the long term. Inflation rate negatively affects renewable natural resource utilization efficiency. As practical policies, implementing operational plans to develop the green bonds market, promoting green foreign direct investment, efficient monetary policy to lower inflation rate, and enhancing digital green bonds are recommended.

Automated summary

This study examines the impact of issued green bonds on the effectiveness of renewable natural resource utilization in 15 selected Asia-Pacific countries during 2012-2021. The results show that green bonds have a positive and statistically significant effect on the efficiency of renewable resource utilization, particularly in the long term. Urbanization has a negative short-term effect but a positive long-term impact on resource utilization efficiency. Inflation rate has a negative effect on renewable resource utilization efficiency. The study recommends implementing measures such as developing the green bonds market, promoting green foreign direct investment, and adopting effective monetary policies to lower inflation rate.