The paper titled “Green bonds as a bridge to the UN sustainable development goals on the environment: A climate change empirical investigation” focuses on the United Nations’ Sustainable Development Goals (SDGs).
The United Nations Sustainable Development Goals (SDGs) made an urgent call for action by all the countries across the globe, with an aim to end poverty, improve health and education, reduce inequality, and spur economic growth – all of this is intended to be achieved while tackling climate change and working to protect environment and preserve earth. However, these goals cannot be achieved unless money is mobilised to finance climate change mitigation and adaptation efforts across the world.
In response, various manifestations of green bonds have appeared in the market and these are considered as a bridge to the achievement of the SDGs – this is because climate mitigation and adaptation are integral to successful implementation of the SDGs.
To achieve the results, Dr Rizwan Ahmed used Capital Asset Pricing Model, Fama-French Three Factor, Carhart Four Factor and Fama-French Five Factor pricing models. His finding provides empirical evidence that the announcement of green bonds issuance lead to positively abnormal return on stocks. The consistent results highlight the firms’ and investors’ efforts towards climate action (SDG13) and strongly suggest that green bonds play an important role as a bridge to the SDGs.
This empirical work adds to the growing portfolio of effective and contemporary research being conducted by members of The Centre for Quantitative Finance.
The findings have been published in the International Journal of Finance and Economics in a paper as given below:
Ahmed, R., Yusuf, F. and Ishaque, M., 2022. Green Bonds as a Bridge to the UN Sustainable Development Goals on Environment: A Climate Change Empirical Investigation. International Journal of Finance and Economics