Green Financial Instruments and Renewable Energy: Toda-Yamamoto Causality Test

Year 2023, Volume: 8 Issue: 1, 191 - 203, 30.06.2023

Muhammed Fatih Yürük

Abstract

This study analysed the relationship between green financial assets in the United States and different variables. The fact that climate change has become important worldwide and that global development has been promoted has made green finance important. The world's governments, caring about the transition to a low-carbon economy and their efforts to finance environmentally friendly investments, have developed green finance tools. The fact that green financial assets will gain more importance in the coming years has added motivation to this study. In the study, many variables related to green finance were used and analyzed. Monthly data for the S&P Green Bond Index, S&P Global Clean Energy Index, Invesco Wilder Hill Clean Energy, United States 10-Year Bond, Carbon Dioxide Emissions from Energy Consumption, and Total Renewable Energy Production variables between July 2012 and April 2022 were included in the research. The Toda-Yamamoto causality test was applied in the study. In the Toda-Yamamoto causality test, it is a great advantage that the series does not need to be static at the same level. As a result of the test, bidirectional causality was found between Invesco WilderHill Clean Energy and the United States 10-Year Bond variables.

Keywords

Toda-Yamamoto Causality Test, Renewable Energy, Green Finance, United States Bonds

Yeşil Finansal Araçlar ve Yenilenebilir Enerji: Toda-Yamamoto Nedensellik Testi

Abstract

Bu çalışmada Amerika Birleşik Devletleri'ndeki yeşil finansal varlıklar ile farklı değişkenler arasındaki ilişki analiz edilmiştir. İklim değişikliğinin dünya çapında önem kazanması ve küresel kalkınmanın teşvik edilmiş olması, yeşil finansmanı önemli kılmıştır. Düşük karbonlu bir ekonomiye geçişi önemseyen dünya hükümetleri çevre dostu yatırımları finanse etme çabaları yeşil finans araçlarını geliştirmiştir. Yeşil finansal varlıkların önümüzdeki yıllarda daha da önem kazanacak olması bu çalışmaya motivasyon katmıştır. Çalışmada yeşil finans ile ilgili birçok değişken kullanılmış ve analiz edilmiştir. Araştırmada Temmuz 2012-Nisan 2022 tarihleri arasında S&P Yeşil Tahvil Endeksi, S&P Küresel Temiz Enerji Endeksi, Invesco WilderHill Temiz Enerji, Amerika Birleşik Devletleri 10 Yıllık Tahvil, Enerji Tüketiminden Kaynaklanan Karbondioksit Emisyonları, Toplam Yenilenebilir Enerji Üretimi değişkenlerinin aylık verileri yer almıştır. Çalışmada Toda-Yamamoto nedensellik testi uygulanmıştır. Toda-Yamamoto nedensellik testinde, serinin aynı seviyede statik olması gerekmemesi büyük bir avantajdır. Test sonucunda, Invesco WilderHill Temiz Enerji ve Amerika Birleşik Devletleri 10 Yıllık Tahvil değişkenleri arasında çift yönlü nedensellik bulunmuştur.

Keywords

Toda-Yamamoto Nedensellik Testi, Yenilenebilir Enerji, Yeşil Finans, Amerika Birleşik Devletleri Tahvilleri

References

• Abumdallala, S. M. (2019). The Relationship Between Imports and Inflation in Palestine: Toda and Yamamoto Causality Analysis. International Journal of Business Administration, 10(2), 17-21.
• Ali, D. & Yılmaz, M. (2021). The Importance Of Renewable Energy And Its Place In Latin American Geography: The Example Of Brazil. Ankara Üniversitesi Dil ve Tarih-Coğrafya Fakültesi Dergisi, 61(1), 339-358.
• Alper, F. Ö. (2018). The Relationship Between Renewable Energy and Economic Growth: 1990-2017 The Case Of Turkey. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 8(2), 223-242.
• Arkhipova, V. (2017). "Green Finance" as Recipe for Solving Global Problems. HSE Economic Journal, 21(2), 312-332.
• Bayraç, H. N. & Çildir, M. (2017). The Effects Of Eu Renewable Energy Polıcies On Economic Growth. Uluslararası Yönetim İktisat ve İşletme Dergisi, 13(13), 201-212.
• BP. (2021). https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2021-full-report.pdf.
• BP. (2022). BP Statistical Review of World Energy: 71st edition.
• Brühl, V. (2021). Green finance in Europe: Strategy, regulation and instruments: Center for Financial Studies (CFS).
• Canöz, İ. (2018). The Causality Relationship Between Istanbul Stock Exchange 100 Index and Consumer Confidence Index: The Case of Turkey. Fiscaoeconomia, 2(1), 136-153.
• Chauhan, S., Pande, R. & Sharma, S. (2020). The causal relationship between Indian energy consumption and the GDP: A shift from conservation to feedback hypothesis post economic liberalisation. Theoretical and Applied Economics, XXVII(3(624), Autumn), 203-212.
• Çıtak, O. S. (2016). How Much of the Carbon Footprint is in the Financial Markets: Carbon Markets’ Performance and Establishment of the Carbon Central Bank. Maliye Ve Finans Yazıları(105), 31-46.
• ClimateBonds. (2023). 2022 Market Snapshot: And 5 big directions for sustainable finance in 2023. https://www.climatebonds.net/2023/01/2022-market-snapshot-and-5-big-directions-sustainable-finance-2023.
• Dilara, A. & Karış, Ç. (2019). An Evaluation On Energy Imports And Current Account Deficit In Turkey. Adıyaman Üniversitesi Sosyal Bilimler Enstitüsü Dergisi(32), 380-412.
• Di̇nç, D. T. (2019). Acceleration Loss In China’s Economic Growth: The Impact Of Export-Government Expenditures, Todayamamoto Causality Test. Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi(54), 461-486.
• Dou, X., Qi, S. & Luo, R. H. (2020). The choice of green bond financing instruments. Cogent Business & Management, 6(1).
• Dritsaki, C. (2017). Toda-Yamamoto Causality Test between Inflation and Nominal Interest Rates: Evidence from Three Countries of Europe. International Journal of Economics and Financial Issues, 7(6), 120-129.
• Ehlers, T., Mojon, B. & Packer, F. (2020). Green bonds and carbon emissions: exploring the case for a rating system at the firm level. BIS Quarterly Review, September.
• Genç, M. C. & Tandoğan, D. (2015). The Relationship Between Information And Communication Technologies And Total Factor Productivity In Turkey: A Todayamamoto Causality Approach. Journal of Management and Economics Research, 13(2), 272-282.
• Hadaś-Dyduch, M., Puszer, B., Czech, M. & Cichy, J. (2022). Green Bonds as an Instrument for Financing Ecological Investments in the V4 Countries. Sustainability, 14(19), 1-48.
• Hamdi, H. (2013). Testing Export-led Growth in Tunisia and Morocco: New Evidence using the Toda and Yamamoto procedure: University Library of Munich, Germany.
• Iea. (2019). World electricity generation mix by fuel, 1971-2019. https://www.iea.org/reports/world-energy-balances-overview/world.
• Kambur, E. & Aksoy, M. (2022). In the Period 1998-2018 Analysis of the Investment Made in Tourism and Economic Growth with Granger Causality and Toda-Yamamoto Method in Turkey. Fırat Üniversitesi Sosyal Bilimler Dergisi, 32(3), 1099-1112.
• Karaaslan, A., Hayri, A. & Çamkaya, S. (2017). Research On Factors Affecting CO2 Release: An Econometric Application On OECD Countries. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 21(4), 1297-1310.
• Kaya, K. & Koç, E. (2015). Enerji kaynakları yenilenebilir enerji durumu. Ondokuz Mayıs Üniversitesi, 668(56), 36-47.
• Küçükaksoy, İ., Çifçi, İ. & Özbek, R. İ. (2015). Export-led Growth Hypothesis: Turkey Application. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 5(2), 691-720.
• Lăcătuş, A. M. (2020). Green Bonds: The Most Innovative Financial Instruments On The Stock Exchange. Annals of Faculty of Economics, 1(1), 264-273.
• Lyeonov, S., Pimonenko, T., Chygryn, O., Reznik, O. & Gaynulina, R. (2021). Green brand as a marketing instrument: principle, features and parameters. International Journal of Global Energy Issues, 43(2/3), 147-165.
• Meçik, O. & Koyuncu, T. (2020). The Relationship between Migration and Economic Growth in Turkey: Toda-Yamamoto Causality Test. Itobiad: Journal of the Human & Social Science Researches, 9(3).
• Naimoğlu, M. (2021). Renewable Energy Consumptıon And The Effect Of Energy Losses On Economıc Growth By The Fourıer Approach: The Example Of Germany. Journal of Economics and Research, 2(1), 59-68.
• Najahi, A., Mousavi Jahromi, Y., Khodadadkashi, F. & Haji, G. A. (2016). Relationship between Structure and Performance in the Banking Industry of Iran. Journal of Money and Economy, 11(4), 443-466.
• ourworldindata.org. (2021). Global CO2 emissions from fossil fuels. https://ourworldindata.org/co2-emissions.
• Özkaya, Y. İ. (2004). Yenilenebilir Enerji Kaynakları. Uluslararası Ekonomik Sorunlar Dergisi, 14.
• Pamir, A. N. (2003). Dünyada ve Türkiye’de Enerji, Türkiye’nin Enerji Kaynakları ve Enerji Politikaları. Metalurji Dergisi, 134(23).
• Pekmezci, A. (2020). The Relationship Between Tourism And Economic Growth In Turkey: Toda-Yamamoto Causality Approach. Yönetim ve Ekonomi Araştırmaları Dergisi, 18(4), 317-325.
• Peterson, O. (2021). Making Sustainble Finance Sustainable. Financial Internet Quarterly (formerly e-Finanse), 17(3), 64-70.
• Sachs, J. D., Woo, W. T., Yoshino, N. & Taghizadeh-Hesary, F. (2019). Why is Green Finance Important ? : eSocialSciences.
• Sannikova, L. V. (2021). Legal Framework for Green Finance in the EU and Russia. Finansovyj žhurnal — Financial Journal(5), 29-43.
• Şengöz, M. (2021). Ulusal enerji yönetimi. Uluslararası Politik Araştırmalar Dergisi, 7(1), 73-85.
• Şenpınar, A. & Gençoğlu, M. T. (2006). The Comparision Of The Renewable Energy Sources In Environmental Effects. Fırat Üniversitesi Doğu Araştırmaları Dergisi, 4(2), 49-54.
• Şentürk, M. & Akbaş, Y. E. (2014). The Evaluation Of Mutual Relationship Among Unemployment-Inflation And Economic Growth: The Case Of Turkey. Journal of Yasar University, 9(34), 5820-5832.
• Siami-Namini, S. (2017). Granger Causality Between Exchange Rate and Stock Price: A Toda Yamamoto Approach. International Journal of Economics and Financial Issues, 7(4), 603-607.
• Statista, (2022). https://www.statista.com/statistics/1102949/global-research-and-development-spending-energy/
• Statista, (2022). https://www.statista.com/statistics/519522/investment-in-clean-energy-worldwide-by-technology/
• Statista. (2021). https://www.statista.com/statistics/205966/world-carbon-dioxide-emissions-by-region/#statisticContainer.
• Takumah, W. & Iyke, B. N. (2017). The links between economic growth and tax revenue in Ghana: an empirical investigation. International Journal of Sustainable Economy, 9(1), 34-55.
• Topallı, N. (2015). The Effect Of Tourism Sector On The Economic Growth Of Turkey: 1963-2011. Uluslararası İktisadi ve İdari İncelemeler Dergisi(14).
• World Energy Council, (2021). https://www.dunyaenerji.org.tr/bp-2021-dunya-enerji-istatistikleri-raporu-ozeti/
• Yenilmez, F. & Erdem, M. S. (2018). The Relationship Between Economic Growth and Energy Consumption in Turkey and The European Union: Toda-Yamamoto Causality Test. Eskişehir Osmangazi Üniversitesi Sosyal Bilimler Dergisi, 19(1), 71-95.
• Yurtkuran, S. (2022). The Relationship Between Tourism And Co2 Emission In The 10 Countries With The Highest Number Of Incoming Tourists: Panel Fourier Toda-Yamamoto Causality Analysis. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi(61), 281-303.