Can issuing carbon neutral bonds promote low-carbon investment in renewable energy industry？

Abstract

Guiding by the goal of carbon neutrality and carbon peaking, the importance of low-carbon finance in renewable energy industry is becoming increasingly prominent, and carbon neutral bond (CANB) is showing a strong development trend. This study explores the impact of CANB on low carbon investment (LOCI) in renewable energy industry based on the OLS method combined with the quarterly samples, and the following results are obtained. First, issuing CANB can lead to a 4.7 % increase in LOCI. Second, the higher the scale, duration, and rating of CANB, the more they can promote LOCI. Third, CANB may promote LOCI by strengthening corporate environmental responsibility and alleviating financing constraints, while CANB may reduce LOCI by increasing operational pressure. Fourth, CANB has a stronger promoting effect on the LOCI of large-scale firms, central state-owned firms, and eastern firms. Fifth, under the pressure of carbon peaking and public low-carbon attention, CANB has a higher promoting effect on LOCI. This study aims to provide policy implications for promoting low-carbon development of renewable energy firms.