Climate policy uncertainty and the green bond market: fresh insights from the QARDL model

Authors

Qiang JI, Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049, ChinaFollow

Document Type

Research-Article

Author

Xiaohang Ren, Yiying Li, Qiang Ji, Pengxiang Zhai

Journal Name

Applied Economics Letters

Keywords

Climate policy uncertainty, green bonds, long-term cointegration impact, QARDL

Abstract

Using a QARDL technique, this article explores the short- and long-term effects of climate policy uncertainty on the green bond market while controlling the impacts of shocks from the fossil fuel market and the conventional bond market. We find that in the short run, the crude oil price and treasury interest rates are more influential than climate policy uncertainty, whereas in the long run, the positive influence of climate policy uncertainty outweighs the effects of other driving factors. Our findings hold great implications for firms, bond investors, and policymakers to manage the increasing climate-related policy risk. © 2023 Informa UK Limited, trading as Taylor & Francis Group.

http://doi.org/10.1080/13504851.2023.2275643

Recommended Citation

JI, Qiang (2025) "Climate policy uncertainty and the green bond market: fresh insights from the QARDL model," Double Helix Methodology: Vol. 6: Iss. 4, Article 5.
Available at: https://diis-mips.researchcommons.org/helix-content/vol6/iss4/5