Analyzing the impact of green bond issuances in achieving sustainable development

Trying to meet unlimited human needs with limited resources causes production activities to deplete or pollute natural resources. Ensuring the sustainability of natural resources and the environment is very important in leaving a livable world to future generations. The concept of sustainable development, which emerged from this, has been on the agenda of many countries, especially supranational organizations, especially in recent years. However, another important point here is to provide the financial resources needed to ensure sustainable development. At this point, green bonds have been developed as a new financial instrument. Green bonds are instruments that aim to promote sustainability and help develop projects focused on environmental protection and implement other climate-related projects. Based on this, the study aims to examine the impact of green bonds issued in the world on sustainable development with the help of panel data analysis for 17 developed countries in the 2014-2022 period. In the study, Westerlund-Edgerton LM bootstrap cointegration and Dumitrescu-Hurlin panel causality tests were applied, considering the horizontal intercept dependence and the heterogeneity of the slope coefficient of the constant term of the model. The study concluded that there is a long-term cointegration relationship between green bonds, human development index, trade openness and ecological footprint across the panel, and a bidirectional causality relationship between all variables.