Abstract
This paper discusses the dynamic long- and short-term effects of bitcoin price (BTP), crude oil price (COP), and uncertainty of economic policy (EPU) on China's green bond (CGB) market, separately. Depending on the quantile autoregressive distributed lag method, the empirical results are shown that BTP and EPU exert substantial positive and negative effects on the CGB market in the long term for most circumstances, while their effects reflect not prominent in the short term. The main contributions can be summarized as follows. Given that China is the largest bitcoin mining state and a major green bond issuer, this study first explores the linkages between them. Furthermore, both long- and short-term effects are investigated from BTP, COP, and EPU to CGB, and long-term effects are dominated in the interrelationships among variables, indicating that the CGB market is mainly driven by permanent shocks. In addition, the mentioned long-term effects are deeply discussed from time- and quantile-varying aspects. This approach considers diverse situations in the bond market and various incidents that occur at various durations of time. The results underscore the significance of market participants gaining a deeper comprehension of how BTP, COP, and EPU impact green bond within varying market conditions. Implementing specific policies, such as establishing a cohesive and efficient bond market and making careful adjustments to economic policies, can be advantageous in maintaining stability within the CGB market.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Environmental science and pollution research international
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.