Post Covid Era: Future of Economies and World Order

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DOI :10.26650/B/SS10.2023.001.14   IUP :10.26650/B/SS10.2023.001.14    Full Text (PDF)

Are Us Bond Interest Rates An Indicator for the Green Bond Market?

Salim Sercan Sarı, Kübra Saka Ilgın

Climate changes are increasing daily and appear as a global problem threatening the environment and humanity. Many non-governmental organizations and associations work to protect the environment. In financial markets, the importance of green bonds, which are used in financing green projects that each country agrees on, is increasing to benefit the environment and ensure sustainable development. This study it is aimed to determine the relationship between the US 10-year bond rates and the green bond index with monthly data for June 2011-August 2021. The analysis examined the long-term and causal relationship between the series using unit root, cointegration, and causality tests. The analysis findings showed no cointegration relationship between the series that became stationary at the first difference but a one-way causality relationship from the US 10-year bond interest rates to the green bond index.


Keywords: Bond Market, Green Bonds, Cointegration, Causality

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