Enhancing resource efficiency through the utilization of the green bond market: An empirical analysis of Asian economies

Abstract

This research explores the effects of the green bonds market on resource efficiency across 12 actively involved Asian economies from 2015 to 2022. The empirical results indicate a positive connection between green bond issuance and resource efficiency, suggesting that a 1% increase in green bonds corresponds to significant short-term (0.33%) and long-term (0.43%) improvements. Surprisingly, a negative relationship is observed between GDP growth and resource efficiency, implying that economic expansion may contribute to heightened resource consumption. The study highlights the favorable impact of renewable power generation on resource efficiency, driven by the sustainability of renewable energy sources. Nevertheless, challenges arise from poverty ratios and consumer price indices, impeding the adoption of resource-efficient technology. Furthermore, while cell phone penetration initially benefits resource efficiency, a negative correlation emerges in the long term due to increased non-renewable energy consumption. In light of these findings, the study recommends practical policies for sustainable development, including actively promoting the green bonds market, targeted investments in renewable energy, and initiatives to address economic disparities while encouraging resource-efficient practices.