Energy Security, Sustainable Development and the Green Bond Market

Author:

Orzechowski Arkadiusz,Bombol Małgorzata

Abstract

Many countries are pursuing energy security (ES) in their economies while implementing sustainable development goals (SDGs). Relevant policies may include: (1) access to efficient alternative and preferably renewable energy sources (RESs); and (2) reductions in conventionally obtained energy consumption. As the demand for energy is growing and alternative energy resources are expensive, new ways of financing projects to improve ES are of special interest, e.g., issuing green bonds. In such cases, the obtained funds are allocated to projects that can both improve ES and help to achieve SDGs. The aim of the study was to explore the dependences (in the sense of Granger causality) between the green bond (GB) market, different aspects of sustainable development, as measured by global indicators taken from a family of environmental NASDAQ OMX indices, and ES represented by crude oil prices. The methodology is based on the vector autoregression model. The findings reveal evidence of a short-term dependence between the GB market, ES and the multidimensional nature of sustainable development.

Publisher

MDPI AG

Subject

Energy (miscellaneous),Energy Engineering and Power Technology,Renewable Energy, Sustainability and the Environment,Electrical and Electronic Engineering,Control and Optimization,Engineering (miscellaneous),Building and Construction

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