Investigating the spillovers and connectedness between green finance and renewable energy sources
| dc.contributor.author | Eyup Dogan | |
| dc.contributor.author | M. Teresa Madaleno | |
| dc.contributor.author | Dilvin Taşkın | |
| dc.contributor.author | Panayiotis G. Tzeremes | |
| dc.date.accessioned | 2025-10-06T17:49:55Z | |
| dc.date.issued | 2022 | |
| dc.description.abstract | Although a few studies have analyzed the nexus of renewable energy and green finance the literature lacks the use of renewable energy by sources. The other major failure is that it uses only annual and small data. Therefore this study investigates the connectedness and spillovers relationship between green finance and five types of renewable energy (biofuels fuel cell geothermal solar and wind) by applying the novel TVP-VAR method of Balcilar et al. [1] to the daily indexes from July 31 2014 to Feb 4 2022. The results show that dynamic connectedness both total and pairwise is heterogeneous over time and influenced by economic events. Furthermore wind is found to be the largest transmitter of shocks to green finance followed by biofuels while both fuel cell and geothermal receive the least shocks. The findings suggest that green finance is mostly a net receiver of shocks from renewable energy sources and that wind has been a net receiver of shocks during the COVID-19 pandemic. A high interconnectedness between the indexes highlights the safe-haven property for diversification purposes of green finance. Our results are important for energy policymakers those responsible for the implementation of environmental policies individual investors and portfolio managers while also shedding light on the achievement of COP26 goals. © 2022 Elsevier B.V. All rights reserved. | |
| dc.identifier.doi | 10.1016/j.renene.2022.07.131 | |
| dc.identifier.isbn | 9780123750259 | |
| dc.identifier.issn | 18790682, 09601481 | |
| dc.identifier.issn | 0960-1481 | |
| dc.identifier.uri | https://www.scopus.com/inward/record.uri?eid=2-s2.0-85135881872&doi=10.1016%2Fj.renene.2022.07.131&partnerID=40&md5=ffd03f319147f99f8a7030a064f72668 | |
| dc.identifier.uri | https://gcris.yasar.edu.tr/handle/123456789/8663 | |
| dc.language.iso | English | |
| dc.publisher | Elsevier Ltd | |
| dc.relation.ispartof | Renewable Energy | |
| dc.source | Renewable Energy | |
| dc.subject | Connectedness, Green Finance, Renewable Energy, Tvp-var, Biofuels, Energy Policy, Environmental Protection, Investments, Natural Resources, Renewable Energy Resources, Value Engineering, Connectedness, Green Finance, Major Failures, Property, Renewable Energies, Renewable Energy Source, Small Data, Solar And Winds, Tvp-var, Use Of Renewable Energies, Fuel Cells, Alternative Energy, Covid-19, Energy Policy, Finance, Policy Making, Spillover Effect | |
| dc.subject | Biofuels, Energy policy, Environmental protection, Investments, Natural resources, Renewable energy resources, Value engineering, Connectedness, Green finance, Major failures, Property, Renewable energies, Renewable energy source, Small data, Solar and winds, TVP-VAR, Use of renewable energies, Fuel cells, alternative energy, COVID-19, energy policy, finance, policy making, spillover effect | |
| dc.title | Investigating the spillovers and connectedness between green finance and renewable energy sources | |
| dc.type | Article | |
| dspace.entity.type | Publication | |
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| gdc.description.endpage | 722 | |
| gdc.description.startpage | 709 | |
| gdc.description.volume | 197 | |
| gdc.identifier.openalex | W4290098893 | |
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| gdc.oaire.sciencefields | 0211 other engineering and technologies | |
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| gdc.opencitations.count | 139 | |
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| person.identifier.scopus-author-id | Dogan- Eyup (56088161200), Madaleno- M. Teresa (36548856100), Taşkın- Dilvin (57199073908), Tzeremes- Panayiotis G. (57191971120) | |
| project.funder.name | Despite these efforts there are barriers to reaching net-zero targets that are dependent on the emergence of new green technologies. The main problem with the required technologies is not limited to suspicions regarding their workability or having been untested at scale but the necessity of enormous injections of private capital [4]. In other words a lack of financial resources and insufficient contributions by the private sector to renewable energy investment is the main obstacle for countries in shifting to renewable energy [56]. During COP 26 finance was at the core of discussions and emerging countries emphasized their need for the transfer of finance and technology to switch to a lower carbon-emitting phase by adopting renewable energy [7]. With COP 26 aiding poorer countries converting to net-zero at least $100 billion over the next 10 years is assured. Yet the huge expenditures resulting from the COVID-19 pandemic are causing many emerging and even developed countries distress. There is huge concern that the shift of expenditures from renewable energy projects to cope with the downside risks of the pandemic will result in lower commitments to environmental progress [8]. A shift to renewable energy despite the commitments in COP 26 does not seem likely given the gigantic need for funds to finance these technologies. Still the initiation of renewable energy technologies is inevitable for almost every energy importing country not only because of environmental impacts but also because of increasing energy prices and supply issues. Recent developments regarding the Ukrainian-Russian war have also made it clear that maintaining sufficient energy sources especially renewable energy sources is a necessity to cope with unexpected shocks in energy markets despite the huge installation costs.Hu et al. [31] also associate green credit policy significantly with green patents for high-polluting companies. Dogan and Seker [43] investigate European Union countries that are representative of the largest renewable energy users and report a link between effective reduction of domestic carbon dioxide emissions and financial development. Meo and Karim [44] consider the top ten economies supporting green finance and their quantile-on-quantile regression analysis results suggest that green finance causes carbon dioxide emissions to decline. Zhou et al. [33], Zhou et al. [45] calculate a green finance development index and relate it with emissions such as industrial smoke dust solid waste and carbon dioxide. Their findings show the positive contribution of green finance to environmental outcomes in 30 provinces in China with varying degrees of economic development. Zhao et al. [46] report conflicting results for example that financial depth development reduced sulfur dioxide and solid waste whereas financial efficiency increased these two waste types. A positive impact of financial development on industrial wastewater [47] and nitrogen oxide [48] has also been reported. Rasoulinezhad and Taghizadeh-Hesary [49] investigate the green energy index and green finance and their relationship with carbon dioxide emissions and energy efficiency in the top ten economies supporting green finance. Their results indicate that green bonds are an effective method for financing green energy projects and diminishing carbon emissions. | |
| publicationvolume.volumeNumber | 197 | |
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