Econometric research on green bonds, cryptocurrency and financial markets

Green bonds are similar to traditional bonds but are used to raise funds to finance climate or environmental projects. The first green bond was issued by the European Investment Bank (EIB) in 2007, and the World Bank followed this issue the following year. Over the last 15 years, green bonds have become an important tool in combating the effects of climate change and related challenges. Today, clean water and food security in the world are at risk, and approximately 1 million of the 8 million animal and plant species in the world are in danger of extinction. It is a fact that a lot of funding is needed to overcome this. Linking environmental projects to capital markets and investors and directing capital towards sustainable development is critical, and green bonds are an important way to make this connection. The aim of this thesis is to investigate the dynamic relationships between the S&P Green Bond Index, NYSE, SSE, FTSE 100 and Bitcoin price by applying Granger causality and Johansen cointegration tests. The sample of the study covers the period from January 2021 to December 2022. According to the findings of the study, a one-way Granger Causality relationship was detected from the S&P Green Bond Index to the stock market indices and the Bitcoin price. On the other hand, Johansen Cointegration test findings also show that there is a cointegration relationship between these variables in the long run.