Green Equity Research Articles

Developing Destination Brand Equity for Achieving Sustainable Destination Environment: S‐O‐R Theory to Influence Tourists’ Environment Responsible Behavior

The excessive use of natural resources and irresponsible behavior of tourists have posed severe threats to sustainable destination environment. In response, destination managers have been paying more attention to environmental protection and focusing on strategic ways to achieve a sustainable destination environment. Objective of the study is to analyze the influence of destination brand equity (DBE) on tourists’ environmentally responsible behavior (ERB). The study considered four dimensions of DBE, including perceived destination awareness, quality, image, and loyalty. Further, the study explored the interrelationship among the dimensions of DBE and considered perceived destination loyalty (PDL) as a mediator. Further the study explained tourists’ ERB with the serial mediation of perceived destination trust (PDT) and moderation of destination green equity (DGE). The study employed a self-administrative survey method, and data were gathered from 911 respondents who attended selected nature parks. Results for DBE indicated insignificant effect of perceived destination awareness (PDA) on tourists’ ERB, while perceived destination quality (PDQ) and perceived destination image (PDI) have a significant impact on tourists’ ERB. Further results indicated that PDL has significantly mediated all three dimensions of DBE. The results also revealed that PDT and PDL serially mediated the effect of PDA, PAQ, and PDI on tourists’ ERB. Finally, moderation results indicated that DGE significantly moderated the effect of PDQ, PDI, and PDL on tourists’ ERB. The study has enhanced the existing literature on destination branding and tourists’ ERB through Stimuli‐Organism‐Response (S‐O‐R) model. The study has proposed significant branding strategies for destination management to influence tourists’ ERB. The study has also suggested strategies for policymakers and tourism departments.

Exploring the equitable inclusion of diverse voices in urban green design, planning and policy development: a scoping review protocol

IntroductionDespite the increasingly evidenced positive impacts of green space on human physical and mental health, green spaces remain inequitably distributed across different socioeconomic groups. Urban planning and design should prioritise...

Like daughter, like father: Female socialization and green equity investment

Are parents' decisions to invest in green equity funds influenced by their daughters? According to the recent literature on female socialization, parenting a daughter is expected to have a positive impact on parents' investment in green equity funds. Based on an original survey among 2288 French investors, we validate the female socialization in a retail investment context. Raising a daughter increases the likelihood of investing in green equity funds by about 3.87 % on average. Consistent with the female socialization hypothesis, this effect only stands for male parent investors, when daughters are still in the household and is not significant for separated fathers. Moreover, the amount invested is also significantly influenced by being a parent of a daughter. Our results support the need to better consider the influence of family members in investment in household finance decision-making and the side effects of education on environmental issues.

Megacity urban green space equity evaluation and its driving factors from supply and demand perspective: A case study of Tianjin

Urban green space (UGS) equity is crucial for sustainable urban development, social harmony, and stability. Given the escalating environmental justice crisis in megacity UGS, ensuring spatial justice and social equity in these areas is vital for sustainable development. This study analyzes the equity of UGS in megacity by assessing both spatial equity from the supply perspective and social equity from the demand perspective while exploring key factors driving this equity. This study found that: 1) The green Gini coefficient in Tianjin's central city, stands at 0.7787, indicating significant spatial inequity, with small UGS exhibiting the highest, followed by medium and large spaces. 2) There is a varying perception of UGS equity across different socioeconomic groups, most pronounced in the center urban area, then in the encircling urban area and remote urban area, indicating a gradual diffusion of green equity from the city center outward. 3) Key external factors influencing UGS equity include economic development, population density, traffic patterns, and local environmental quality, while internal factors like accessibility and size also play a role in spatial equity. Thus, enhancing UGS equity in megacities requires not only top-down supply interventions but also bottom-up demand feedback mechanisms.

The Impact of Financial Stress and Uncertainty on Green and Conventional Bonds and Stocks: A Nonlinear and Nonparametric Quantile Analysis

This study aims to investigate the impact of financial stress and uncertainty on the returns of green and conventional bonds and stocks in the United States from 2010 to 2022. The research utilizes nonlinear and nonparametric analysis, which includes the quantile-on-quantile and nonparametric causality-in-quantiles approaches to examine the relationship between variables. The data analyzed using R programming language show that financial stress positively impacts the middle quantiles of both conventional and green equity, while financial uncertainty negatively impacts upper quantiles. The study also finds that financial stress has a more significant impact on all types of bonds compared to financial uncertainty, with conventional bonds being more affected. This study proposes a pyramid that classifies financial assets based on their susceptibility to financial stress, which could help investors evaluate risk levels and make better investment decisions. The study recommends that policymakers should encourage green investments by offering incentives, such as tax credits. They should also focus on enhancing the efficiency of volatile assets by implementing new investment rules and regulations.

Multiscale quantile dependence between China's green bond and green equity: Fresh evidence from higher-order moment perspective

This study investigates the multiscale quantile dependence between green bond and green equity in China at different moments and investment horizons. A novel Ensemble Empirical Mode Decomposition based Copula Quantile-on-Quantile Regression model (EC-QQR) has been proposed to quantify the multiscale quantile dependence between two green finance markets for different moments. The empirical findings reveal that, first, green bonds have positive correlations with green equities at kurtosis and negative correlations at skewness. Second, the “tail effect” can be found in extreme quantiles for most short- and medium-terms. Third, the rolling window analysis provides evidence of dynamic dependence, especially for the kurtosis moment in the short term, and interdependence is susceptible to major events such as the Sino-US trade war and COVID-19. These findings have implications for investment strategies and risk management in the green finance markets.

Examining time–frequency quantile dependence between green bond and green equity markets

In the context of the rapidly growing demand for green investments and the need to combat climate change, this study contributes to the emerging literature on green investments by exploring the time–frequency connectedness between green bonds (GBs) and green equities. Specifically, we examine the degree of connection between GBs and green equities, the extent to which these markets influence each other, and which one is the primary net transmitter versus the net receiver of shocks under diverse market conditions. To accomplish these objectives, we use the wavelet-based Quantile-on-Quantile (QQ), dynamic conditional correlation (DCC), portfolio implications, and Quantile VAR approaches. The results show that GBs and green equities have a strong positive connection, depending on time and frequency domains. However, a negative association between GBs and green equities is observed during periods of crisis, highlighting GBs’ ability to hedge green equity portfolios. The portfolio strategies demonstrate that investors require to invest in the Green Economy equity and S&P GB portfolio to reach the highest level of hedging effectiveness. The findings further imply that the Global Water Equity Index transmits the highest spillover to other green assets, while the Green Economy Equity Index receives the most spillover from other assets. The pairwise volatility connectivity reveals that most pairs have minimal quantile dependence, indicating the potential for diversification across the GB and green equity pairs. These findings have significant implications for investors and policymakers concerned with green investments and climate change mitigation.

Hedging the climate change risks of China's brown assets: Green assets or precious metals?

A large discrepancy exists between the dire impact of climate change projected by most natural scientists and the modest estimates of damages calculated by mainstream economists. In this article, we first measure the climate risk, including the transition and physical risks, in China using textual analysis. Then, considering the heterogeneity of climate change's effect, we investigate the impact of climate risks on the brown and green assets of China (including price, volatility, and correlation) for the period from February 2012 to April 2022. In addition, the performance of China's green assets and international precious metal assets is examined in hedging the climate risk exposure of China's brown assets. The results reveal that transition and physical risks lead to contrary changes in the prices of brown and hedging assets. Transition risk causes the volatility of brown and green assets to change in the opposite direction, while physical risk causes the volatility of the two types of assets to change in the same direction. Under extreme climate risk conditions, the correlation between brown and hedging assets decreases. Finally, the findings show that the performance of international precious metals in hedging climate risk exposure is better than that of China's green equity assets.

Effective or useless? Assessing the impact of park entrance addition policy on green space services from the 15-min city perspective

This study investigates an innovative approach to enhance urban green space access by adding new park entrances rather than expanding the green space itself, aiming for sustainable urban development. Taking Shenzhen as a case study, we first developed a universal framework to identify potential locations for new entrances and used network analysis in ArcGIS to quantify green service improvements. Then, under the 15-min city concept, the impact on green accessibility and equity was assessed using the two-step floating catchment area (2SFCA) method and Gini coefficient analysis. Results indicate that (1) new entrances enabled 21.10% of residents to access parks with an average reduced travel distance of 214.71 m, and increased the population within a 15-min walk to parks by 7.34%. (2) This strategy proved cost-effective, serving 27.66% of residents at 1/38 the cost of creating new green spaces. (3) Furthermore, the accessible green area within a 15-min walking or cycling increased by 0.18 km2 and 1.42 km2, respectively, without affecting green equity. Our findings support the policy of adding park entrances as a feasible and efficient urban strategy, supporting Sustainable Development Goals (SDGs) 3 and 11, and the policy can be implemented across almost cities.

Green Products: Green trust on Green Equity

The aim of this research is to prove the determining factors that can strengthen the value of Sensatia Botanicals brand green products. he criteria used were respondents who had used beauty products who were at least 20 years old and lived in the city of Denpasar and a sample of 100 respondents who were measured based on the number of indicators used. Distribution of questionnaires and interviews will be used as data collection methods. The questionnaire is measured using a Likert scale which will be tested using the validity test and reliability test of the instrument so that the questionnaire is suitable for use. The analysis technique that will be used in this research is a simple linear regression analysis technique. The results of this research prove that green trust has a positive and significant influence on green brand equity. In the future, this research can be used as a reference for companies in implementing policies related to strategies to increase the brand value of green products in a positive direction.

Equity markets and ESG dynamics: Assessing spillovers and portfolio strategies through time-varying parameters

Motivated by the recent surge of socially responsible activism, we examine the return and volatility transmission between the global Environmental, Governance, and Social index and traditional equity markets of G7 countries. For this purpose, we employ the TVP-VAR model on the returns and volatilities from 04 April 2011 to 09 September 2023. The variance co-variance matrix of the TVP-VAR model is used for portfolio analysis. Our finding indicates a significant level of connectedness between green and traditional equity markets. Moreover, green equity functions as a transmitter of both return and volatility spillovers to the traditional equity markets. In addition, our analysis of dynamic connectedness reflects a spike in both total return and volatility spillover amid the COVID-19 period. This indicates that the relationship between green and traditional equity markets intensifies during times of market stress and uncertainty which further infer implications for portfolio diversification. Furthermore, we calculated optimal asset allocation within portfolios and identified effective hedging ratios for different ESG and G7 equity pairs. The implications of the study include informing portfolio diversification strategies, and guiding decision-making for policymakers, hedge fund managers, and portfolio professionals amidst market uncertainties, based on identified market dynamics and connectedness.

Green Shocks: The Spillover Effects of Green Equity Indices on Global Market Dynamics

This study investigates the impact of green equity indices on global market dynamics using a time-varying parameter vector autoregression (TVP-VAR) model. We uncover a significant shift in the role of the global market, transitioning from a shock transmitter to a shock receiver, as the influence of green finance grows. By directly comparing green equity indices with their corresponding global parent indices, we adopt a global perspective that transcends the limitations of studies focusing on specific regions, such as the USA, China, or Europe. This novel approach minimizes the potential biases in the transmission channels within regional markets, enabling a more comprehensive understanding of the relationship between green finance and global market dynamics. Moreover, by focusing on equity indices we ensure a consistent comparison of financial instruments, avoiding the complexities that arise when comparing different asset classes such as green bonds and conventional equities. For global investors, our results highlight the importance of dynamic and flexible hedging strategies that adapt to the distinct characteristics of green assets and their growing influence on the global market. Risk managers should incorporate these time-varying spillover effects into their models to better assess and mitigate potential risks. Policymakers should consider the growing influence of green finance on the broader market when formulating regulations and incentives to support sustainable investing, as our findings underscore the increasing importance of this sector in shaping market dynamics.

What drives green betas? Climate uncertainty or speculation

Examining green equity sectors including geothermal, wind, solar, bioclean, and clean energy within a DCC-MIDAS framework, we show that green betas are predominantly driven by speculative sentiment in technology stocks rather than climate uncertainty. We argue that the lottery-like features of green assets, whose values are highly tied to the success of new technologies, result in a negative risk-mispricing relationship driven by technology speculation. Further economic analysis shows that a forward-looking investment strategy conditional on technology sentiment yields improved risk-adjusted returns for passive equity investors, particularly following the 2016 Paris Agreement. Our findings establish a new speculation-based channel for characterizing the systematic risk of green assets.

Quantile connectedness of oil price shocks with socially responsible investments

We use a new method to disentangle various sources of oil price shocks and find how these sources are connected to major global environmental, social, and governance (ESG) equity indices under extreme market movements using daily data from October 2007 to March 2022. Our quantile-based connectedness analysis shows that return connectedness considerably amplifies with the size of the shock for both positive and negative shocks, indicating that oil shocks spread more intensely during extreme market movements. We also find that oil shocks originating from unexpected variation in demand and risk substantially contribute to the variation in the ESG returns while supply shocks have relatively little effect when estimated at the median level but the contribution of all different types of shocks remain extremely high when analyzed at the tails. Our results indicate that socially responsible investments are prone to contagion and thus offer limited portfolio diversification benefits under extreme market movements. One clear implication of our study is that investors need to carefully design their risk management and diversification strategies to account for not only the source of the oil shocks but also the magnitude of the oil shock on their green equity investments. We also show that total dynamic connectedness significantly increased during the global financial crisis, European debt crisis, the Brexit episode and the recent COVID-19 outbreak.

Mapping urban green equity and analysing its impacted mechanisms: A novel approach

Current assessment methods of Urban green equity (UGE) ignore the social differentiation of urban space, which may lead to a misallocation of green space resources, exacerbating differentiation, and potentially giving rise to green gentrification (GG). This study employs a novel evaluation framework and approach for UGE, considering the impact of landscape and greening on Spatial Differentiation of Residential Areas (SDORA), to evaluate the UGE of the west bank core area in Changsha city, Hunan Province, China, and explores its influencing mechanisms. The results show that (1) The study area exhibits significant greening differentiation, and residential areas with high property prices have higher quality landscapes and greening than those with low property prices. (2) The region displays significant green equity disparity (GEI = 0.497) and GG. (3) The cumulative contribution of landscape and greening to SDORA reaches 39.04 %, with the features of water body and mountain proximity as well as accessibility having the most significant impact on urban green space differentiation. This study enhances the understanding of UGE assessment, emphasizing the importance of considering spatial differentiation during UGE evaluation, and provides technical support and scientific guidance for the planning and construction of urban green space systems.

Prediction and evaluation of the energy structure under the green finance development in Chongqing municipality, China

Chongqing, as the last ecological barrier of the Upper Yangtze River, is constrained to achieve “dual carbon” goals due to imbalanced energy structure. Based on selecting the energy structure influencing factors through Copula function and Granger causality, a multi-dimensional dynamic support vector machine model (SSA-MFD-SVR-ARIMA) by adopting sparrow algorithm was constructed to predict the proportion of Chongqing's energy structure from 2021 to 2030 under the drive of green finance development, and an optimization path was obtained. The novel findings confirm that (1) the correlated contribution rate of Green Finance to optimizing Chongqing's Energy Structure is 10.8 %; (2) under the sustained growth rate of Green Finance at 4.5 %, the proportion of coal consumption will reach 40.03 % by 2030, and non-fossil energy consumption will account for 27 %. It confirms that Chongqing can achieve the Energy Development Plan assigned by the Central Government in 2025. The research proposes a four-dimensional optimized pathway from a financial perspective that includes green equity investments, digital finance for energy, financing environmental rights and interests, and developing an industry fund. Furthermore, our put forward the safeguard strategies for financing, innovation, linkage, and protection mechanisms of this pathway optimization.

Assessing Distributional and Perceived Equity of Urban Green Spaces in Qingdao’s Historic Urban Area

Urban green spaces (UGSs) satisfy citizens’ physical and psychological demands and are considered an integral part of sustainable urban development. However, the distribution of UGS is often uneven, especially in historic urban areas with high building density and limited facilities, thus leading to issues of green inequity. This study examines two dimensions of green equity in Qingdao’s historic urban area, distributional equity and perceived equity, based on a fine-grained division of units and districts. Distributional equity is analyzed using the Gaussian two-step floating catchment area (G2SFCA) method and Gini coefficient to accurately calculate the equity in distribution and accessibility of UGSs. The perceived equity is assessed through the green view index (GVI) and location quotient of the streets, which represents citizens’ visual perception of green quality. Based on these analyses, a dual-perspective evaluation model of green equity is conducted, and the results show a significant imbalance of greenery supply and population demand in the historical urban area of Qingdao. This disequilibrium in green spaces leads to 62.20% of people living with low green equity, while only 8.12% experience high green equity. To maximize social justice, priority should be given to improving the 15 districts with low green equity; doing so could effectively reduce green inequity within historic urban areas where facilities and resources are relatively scarce, thereby improving the efficiency of urban renewal efforts.

North–South Differences and Formation Mechanisms of Green Finance in Chinese Cities

This paper discusses the north–south difference in green finance in China and its internal mechanism. The entropy method is used to measure the green finance level in China from 2000 to 2022 through seven dimensions of green credit, green investment, green insurance, green support, green bonds, green funds, and green equity. The Dagum Gini coefficient and variance decomposition are used to reveal the differences and sources from the perspectives of north–south space and structure. The QAP method is utilized to explore formation mechanisms of differences. Research findings show that the overall level of green finance is not high, with the southern level higher than northern one. However, spatial differences in the green finance index have slightly narrowed, with regional differences being the major contributor to uneven distribution. Secondly, the difference in green funds is the main structural source of the difference in green finance, and the effect of the difference in green bonds and green funds on the difference in green finance increases from north to south, while the effect of the difference in green credit and green support decreases from north to south. This study will enrich the assessment indicator system, providing a reference for green finance differential situations and collaborative development strategies.

Investigating the dynamics of crude oil and clean energy markets in times of geopolitical tensions

This study examines how adverse geopolitical events influence the dynamics of crude oil and clean energy markets. A vector smooth transition regression model is implemented to capture the presence of regime shifts due to geopolitical conflicts. The impulse response analyses reveal that the crude oil market is non-responsive to all geopolitical events. A significant spike in oil prices arises only if risks associated with geopolitical tensions surpass a certain threshold level. The green equity market responds differently, showing an adverse reaction during episodes of higher geopolitical uncertainty. Moreover, our empirical results point out a decoupling between traditional and clean energy sectors in times of geopolitical stress. Our findings contrast with the conventional wisdom that a surge in oil prices would foster a shift toward alternative energies. While the observed disconnection would offer better diversification benefits, it is challenging for policymakers to encourage investors to maintain low-carbon portfolios.

Predict or to be predicted? A transfer entropy view between adaptive green markets, structural shocks and sentiment index

This study assesses green equity markets' behavior in a sense of Lo's adaptive market hypothesis and whether this adaption could be predicted or predicts monetary and commodity structural shocks and sentiment behavior considering normal and uncertain states. Applying Domínguez-Lobato Test, SVAR decomposition and Transfer Entropy methods, the results corroborate the adaptive market hypothesis on green equity markets, and the green equity adaptive markets, structural shocks and Sentiment index are affected by tail distribution events.