A cross-country study of green bond issuance on the environment and economy in ASEAN
Date
2024-01
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Abstract
Global awareness of environmental issues and climate change has been growing for
years. There has also been pressure and a need to address these issues to mitigate their
effects. With that, industries have been contributing to helping the environment
through sustainable ways and policies. One example is how the finance industry helps
combat these issues, such as countries that have started looking into green finance.
Green bonds are a type of debt security that has the same structure as conventional
bonds as the government or corporations issue them to fund environment- or climaterelated
projects. This research addresses the significance and relationship of green
bonds on both economic growth and the environment. It focuses on six ASEAN
countries, particularly, the Philippines, Indonesia, Malaysia, Singapore, Vietnam, and
Thailand. A panel analysis of 48 countries in Asia focusing on the six ASEAN
countries from 2016 to 2022 reveals that Asia has better performance towards the
environment because increases in green bond issuance reduce CO2 and GHG
emissions and contribute to Climate Action (SDG 13). ASEAN green bonds are
positively correlated with the GDP growth rate. With contribution towards economic
growth, issued green bonds in ASEAN perform better than in Asia.
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Keywords
ASEAN, green bonds, environmental economics, financial economics, carbon dioxide emission, GHG emissions, renewable energy, GDP