Green Equity Research Articles

The impact of carbon neutrality on the investment performance: Evidence from the equity mutual funds in BRICS

The promotion of carbon-neutral investments is among the primary constituents of developing a carbon-neutral economy. This is even more important for emerging economies that have constrained financial markets. In this paper, using monthly data between 2011 and 2019, we study 6519 actively managed mutual funds in BRICS after sorting them into black, brown, and green categories based on their investment holdings. Our comparative performance shows that green funds outperform their counterparts for the entire sample and within-country assessment. We also document the volatility and market timing ability of green funds, mainly absent in high emission funds. The results remained robust for various definitions of performance. Our findings also indicate Chinese green funds perform better than those of other countries. This is attributed to the multiple ecologically friendly economic policies that China has adopted over the years. Based on the results, we propose various interventions that could foster the adaptability of a carbon-neutral investment landscape.

Frequency connectedness and cross-quantile dependence between green bond and green equity markets

This paper aims at investigating the frequency connectedness and cross-quantile dependence between green bond and green equity markets. By decomposing green bond and green equity time series data into different frequency bands, we first identify how the connectedness between green bond and green equity varies between the short-term, medium-term and long-term investment horizons. Next, we employ a cross-quantilogram framework to investigate the cross-quantile dependence between green bond and green equity and to capture the spillovers between these markets across a wide range of market conditions. Our empirical results suggest that after controlling for movements in the general stock, energy and fixed-income markets, the dependence between green bond and green equity during normal market conditions is relatively small. On the other hand, green bond and green equity are more connected during extreme market movements, where they boom and bust together. We also find that across all market conditions, the spillover effects between green bond and green equity are short-lived, as the degree of connectedness dissipates in the medium- and long-term investment horizons. Our results have important implications for environmentally conscious investors and policymakers.

Green markets integration in different time scales: A regional analysis

This paper examines the interactions among regional green energy equity markets and their dependence and connectedness with both uncertainties and price fluctuations in the global financial and crude oil markets. Using wavelets and spillovers based on a Time-Varying Parameter VAR model with stochastic volatility, we investigate the lead-lag relationships, co-movement and time-varying integration among these markets across different time domains. First, we found low covariance but positive and strong correlations among regional green energy equities across all time scales. Correlations are mainly negative and weak between regional green energy returns and uncertainties, except for Asia that exhibits positive correlation with oil price shocks in the long term. In terms of fluctuations in prices, results are similar regarding the covariance and correlations with global equity market prices but different for crude oil prices, where all regional green equity markets exhibit positive covariance and correlation with oil price changes especially in the medium term. Second, strong dependence exist among regional green energy equity markets in the medium and long term, especially between the U.S. and European markets. Similarly, dependence among green energy equities and global equity and oil markets both in terms of uncertainties and price fluctuations is weak in the short-run but strengthens towards the long-term except during the COVID-19 period when short-term integration rose sharply. Lastly, the global equity market is the leading source of risks while the Asian green equity market is the main net-receiver of shocks, especially in terms of price fluctuations in the global equity and crude oil markets. We document some crucial practical implications of these results both for investors and policy makers.

Destination green equity and its moderating role of travel satisfaction

Being sustainable reflects a need to appreciate tourist demands in line with the needs of the local community, industry, and environment. In other words, there should be measures to assess a place’s sustainable practices from the eye of the beholders. This study works to develop the concept of destination green equity, which is defined as tourist perception of a destination’s environmental initiatives, and explores its moderating role in the relationship between product and destination satisfaction. Drawing on the goal setting/striving theoretical stream of work, we propose a moderation model of green equity for the relationship between tourism product and destination satisfaction. Based on a sample of over 400 tourists, results reveal that a place’s green equity moderates the effect of food/transportation satisfaction in that the effect is more acute for the high green equity group. This study contributes to the literature by showcasing how environmental initiatives such as recycling and reducing energy consumption could ultimately elevate tourist satisfaction with a destination’s food and transportation offerings. The four-item green equity measure offers scholars and practitioners with a fairly simple and yet comprehensive way to assess a destination’s ecological achievement from the viewpoint of tourists. It also opens an avenue for assessing a place’s greening efforts and the conditioning impacts of such efforts on tourists.

Green Equity in Urban Sustainability: A Scientometric Analysis of Research Trends from 1992 to 2021

This study addresses the critical intersection of climate change, rapid urbanization, and the necessity for sustainable governance models that prioritize environmental health and equitable access to environmental benefits. Focusing on the increasingly relevant concept of green equity, we conducted a scientometric analysis based on a systematic literature review to trace its research evolution from 1992 to 2021. Utilizing the open-source R-tool Biblioshiny, we analyzed academic publications to discern major research themes and their correlation with significant milestones in sustainable development. Our methodology enabled the identification of key research areas and the evolution of thematic lines within the green equity discourse. Notably, we observed a surge in scientific interest and diversity in topics associated with green equity, propelled by international frameworks like the Sustainable Development Goals (SDGs). The expanding body of research encompasses a wide range of issues, including climate change, accessibility to green spaces, ecosystem services, green infrastructure, and socioeconomic factors. Additionally, our study highlights the dynamic patterns in global collaborative networks contributing to this field. The findings underscore the growing prominence of green equity in academic discourse, reflecting its critical role in shaping sustainable urban futures.

How Integrated are Regional Green Equity Markets? Evidence from a Cross-Quantilogram Approach

Rising concerns over climate change have increased investors’ and policymakers’ interests in environmentally friendly investments, which have led to the rapid expansion of the green equity market recently. Previous studies have focused on analyzing the green equity market at the aggregate level, thereby overlooking the heterogeneity across green equity sub-sectors. This paper contributes to the literature by investigating how interdependence between green equity markets and other financial assets varies across regions, market conditions, and investment horizons. To this end, the paper employs the recently developed cross-quantilogram framework, which measures the cross-quantile dependence across time series without any moment condition requirement. The results show that within the green equity market, movements in the U.S. market can predict movements in the Asian and European markets during all market conditions. In contrast, the Asian and European green equity markets only predict movements in the U.S. market during bearish periods. The paper also finds that regional green equity markets respond differently to movements in other financial assets, such as energy commodity and general stock returns. In addition, the interdependence among regional green equity and other assets varies across market conditions and investment horizons. These results have important implications for environmentally friendly investors and policymakers.

Quantile time-frequency price connectedness between green bond, green equity, sustainable investments and clean energy markets: Implications for eco-friendly investors

Quantile time-frequency price connectedness between green bond, green equity, sustainable investments and clean energy markets: Implications for eco-friendly investors

Sustainable Equity Crowdfunding Projects: Are They A Driving Force to Revitalise Italy After Global Socio-Economic Consequences of The COVID-19?

Research background:The outbreak of COVID-19 has disrupted and shaken all economic and financial sectors. In this scenario, crowdfunding has emerged as a new relevant financing mechanism alongside more traditional funding channels by attracting investors through an internet-based method of fundraising to support ventures. In recent years, many crowdfunding platforms, specialized in green projects rose, allowing start-ups to raise funds for their campaigns. The literature on the use of crowdfunding in the sustainable sector is quite limited.Purpose of the article:We use a hand-collected dataset of 350 equity crowdfunding campaigns, gathered from the Italian platforms over the period January 2016-June 2020, to analyze the impact of COVID-19 outbreak on the success of green equity crowdfunding projects. We also test the greater attractiveness of the projects sustainability-oriented than other types of campaigns and if growth in the number of “green” projects is linked to the increase of local environmental performance.Methods:We measure the probability of success of pitched projects, both in terms of the total amount raised and the number of investors. We run a negative-binomial-regression for the number of investors and a Tobit-regression for the amount of capital raised.Findings & Value added:Coherently with our hypotheses, we find that COVID-19 has reduced the probability of success and that campaigns with a sustainability orientation are more likely to reach the funding target because investors give more importance to a sustainable future. Finally, our search provides that the leading countries in environmental performance have a positive effect on the green crowdfunding projects, by aspiring to move toward a sustainable future.

Towards a Standard Framework to Identify Green Infrastructure Key Elements in Dense Mediterranean Cities

Present-day dense cities are increasingly affected by the impacts associated with climate change. The recurrence of extreme climate events is projected to be intensified in cities in the next decades, especially in the most vulnerable areas of the world, such as the Mediterranean region. In this context, the urban green infrastructure (UGI) is presented as a nature-based solution that directly contributes to climate change mitigation in Mediterranean compact cities and improves health, social, welfare, and environmental conditions for inhabitants. This research sets out a manageable framework to define, locate, and categorize more functional green urban and peri-urban areas in a dense Mediterranean city. It takes spatial distribution, extension, and the capacity to improve inhabitants’ wellbeing through the provision of ecosystem services as classification criteria. Results show a scenario with a greater functional green surface available for the citizens to be managed. Identified areas have been categorized as cores, nodes, links, and green spaces defined as “other” areas. In particular, the latter play a significant role at social, structural, and ecological levels. The study showcases that rethinking urban design and strategic decision-making around these areas can enhance green equity in Mediterranean dense cities, their capacity to better deal with environmental extremes, and the inhabitants’ engagement with a culture of sustainability and wellbeing.

Green-Induced tourist equity: the cross-level effect of regional environmental performance

This study extends the customer equity paradigm to propose a green induced tourist equity model in the tourism context. Drawing on the attitude literature pertaining to subliminal persuasion and priming, we argue that the environment performance of the source market plays a pivotal role in inadvertently stimulate tourists to grave from a greener place to visit and hence, greater revisit desire for the destination. We develop a series of multilevel models to test individual-level direct effects leading from green equity to destination loyalty through value equity, brand equity, and relationship equity germane to a destination. We then tested the cross-level moderating effect emanating from source-market’s environmental performance to the proposed direct relationships. This study contributes to the literature by bridging the micro and macro perspective of sustainable tourism. It integrates both individual-level and source market regional-level factors into a multilevel framework to better assess how source-market environmental situations could unconsciously influence tourists greening perceptions and behaviors during their excursions. Applications of subliminal persuasion and priming in the current study also broaden the theoretical understanding of the role of attitude at an aggregate level, and they also help strengthen the linkage between regional environmental performance and tourists predispositions.

Governing for Diversity: An Exploration of Practitioners' Urban Forest Preferences and Implications for Equitable Governance

Urban forests are increasingly acknowledged as sources of multiple benefits and central to climate resilience and human wellbeing. Given these diverse and significant benefits, it is important to govern urban forests so as to ensure that all residents have equitable access and enjoyment. Understanding urban forest preferences, and including them in planning and management, is a key aspect of informed and contextually-relevant urban forest governance. Although many studies have examined public urban forest preferences, we lack an understanding of the preferences of a key stakeholder: urban foresters. This study presents the results of semi-structured interviews with 22 urban forestry and allied green practitioners focused on preferred and least-preferred aspects of the urban forest. Participants expressed their preferred urban forest characteristics according to four themes: administration, spatial attributes, naturalness, and social benefits. Least-preferred characteristics were expressed under the themes of administration and degradation. Results suggest that practitioners employ a systems-level lens when discussing urban forest preferences, in contrast to the general public. However, they also draw on personal experience when constructing their preferences, particularly in relation to naturalness and spatial diversity. These results highlight the importance of recognitional green equity and mosaic governance in urban forestry, to facilitate a just balance amongst the diverse preferences of urban forest stakeholders.

1. The effects of green marketing practices on green equity and customer tolerance

Purpose- This study targets to fill an important gap in the green marketing literature by integrating two inter-related concepts, Green Brand Equity and Customer Based Brand Tolerance (CBBT). Methodology- The participants of the study were female consumers aged between 18-35, users of personal care and cosmetic products and residents of Istanbul city. The product category selected for the purpose of this study was personal care and cosmetics. The research model and the respective hypothesis proposed to identify the determinants of Green Brand Equity and its effect on CBBT were tested by utilizing the Structural Equation Modeling (SEM). Findings- The results of the study confirm that green brand satisfaction and green brand trust are the two determinants of Green Brand Equity. In turn, the results also indicate that a strong Green Brand Equity generates a positive effect on Customer Based Brand Tolerance by increasing consumers’ Performance Tolerance, Price Tolerance as well as Communication Tolerance levels towards the brand. Conclusion- Overall, the study reports a positive impact of Green Brand Equity on Customer Based Brand Tolerance (CBBT). Academic as well as managerial implications are provided based on these findings

Frequency Connectedness and Cross-quantile Dependence Between Green Bond and Green Equity Markets

This paper aims at investigating the frequency connectedness and cross-quantile dependence between green bond and green equity markets. By decomposing green bond and green equity time series data into different frequency bands, we first identify how connectedness between green bond and green equity varies between the short-term, medium-term and long-term investment horizons. Next, we investigate the cross-quantile dependence between green bond and green equity to capture the connectedness between these markets across a wide range of market conditions. Our empirical results suggest that after controlling for movements in the general stock, energy and fixed-income markets, the dependence between green bond and green equity during normal market conditions is relatively small. On the other hand, green bond and green equity are more connected during extreme market movements, where spillovers from green equity to green bond tend to be larger than spillovers in the opposite direction. We also find that across all market conditions, the spillover effects between green bond and green equity are short-lived, as the degree of connectedness dissipates in the medium- and long-term investment horizons. Our results have important implications for environmentally conscious investors and policymakers.

How Integrated Are Regional Green Equity Markets? Evidence from a Cross-Quantilogram Approach

This paper investigates the integration among sub-sectors within the environmentally friendly stock market and the integration between these sub-sectors and other financial asset classes. Using the recently developed cross-quantilogram framework, we contribute to the literature by quantifying the cross-quantile directional spillovers among regional green equity markets and other financial assets. First, we find that within the green equity market, the U.S. sector is the main transmitter of shocks while the Asian sector is the main receiver of shocks, however, the integration among regional green equity markets dissipates in the long run. Second, we find that the relationship between green equity markets and other financial assets such as energy commodity and conventional stock varies across regions and market conditions. Our results imply that understanding the heterogeneity in the internal and external integration of the green equity market is crucial for the design of successful investment strategies and effective policy incentives to promote environmentally friendly investments.

Urban green equity on the ground: Practice-based models of urban green equity in three multicultural cities

Urban green equity, broadly defined as equitable access to and governance of urban forests, mediates urban residents’ ability to derive ecosystem services from urban forests. This article explores conceptions of, barriers to, and strategies for urban green equity as understood by urban forestry and related green practitioners in three multicultural cities in the US. Practitioners identified two principle dimensions of urban green equity: (1) distributional equity, and (2) recognitional equity. The key barrier to distributional equity was the perception of urban forests as amenities, while the key barrier to recognitional equity was multiple identities and urban forest priorities, reflecting existing theories of political ecology and social justice. The research identified and systematized additional sub-barriers to urban green equity and strategies used to overcome barriers in practice. While similar themes of urban green equity emerged across the study cities, key areas of disagreement provide important insights. Interestingly, practitioners identified and discussed distributional equity twice as frequently as recognitional equity, indicating a potential gap in understanding and use of the concept. As cities become increasingly aware of ecosystem services and urban green equity, this research can inform urban forestry and sustainability strategies.

Who has access to urban vegetation? A spatial analysis of distributional green equity in 10 US cities

This research examines the distributional equity of urban vegetation in 10 US urbanized areas using very high resolution land cover data and census data. Urban vegetation is characterized three ways in the analysis (mixed vegetation, woody vegetation, and public parks), to reflect the variable ecosystem services provided by different types of urban vegetation. Data are analyzed at the block group and census tract levels using Spearman’s correlations and spatial autoregressive models. There is a strong positive correlation between urban vegetation and higher education and income across most cities. Negative correlations between racialized minority status and urban vegetation are observed but are weaker and less common in multivariate analyses that include additional variables such as education, income, and population density. Park area is more equitably distributed than mixed and woody vegetation, although inequities exist across all cities and vegetation types. The study finds that education and income are most strongly associated with urban vegetation distribution but that various other factors contribute to patterns of urban vegetation distribution, with specific patterns of inequity varying by local context. These results highlight the importance of different urban vegetation measures and suggest potential solutions to the problem of urban green inequity. Cities can use our results to inform decision making focused on improving environmental justice in urban settings.

How Does China’s Capital Market Respond to Green Investment? An Analysis Based on Green Funds

Guided by the principle of sustainable development, people have reached a consensus on ecological value of green investment. However, the challenge facing green investment is how to coordinate between profit-driven nature of the capital and environmental sustainability, in order to achieve a dual goal of environmental performance and financial returns. The green fund is one of the fastest-growing green investment vehicles in China’s green investment market, implying that Chinese institutional investors are beginning to incorporate environmental elements into their investment decisions. While the primary data in the green equity market is still quite limited and not comparable, green funds claimed as the door of green investment provide us a way to look into the performance of green investment. The benefits and risks of green funds under current market conditions can reflect the price discovery toward green asset investment in the Chinese capital market. This paper aims to explore returns and risks of green investment in the context of China, through the performance evaluation of green funds. It firstly systematically reviews the literature on green investment by following perspectives of environment finance, socially responsible investment and financial innovation. Then, based on a sample of 22 green funds which were founded during June 8th 2010 and Dec 31st 2016 for more than one year, it identifies the market benchmark and 22 non-green funds as a reference group, and assesses funds’ returns and risks, and risk-adjusted returns by using single factor and multifactor models （the Carhart four-factor model）. Furthermore, it analyzes profit sensitivity of fund investors （green investors）. It finds that: firstly, in the context of China, single-factor performance evaluation has suggested that green funds have lower risk-adjusted returns than market benchmark and traditional non-green funds; secondly, investment strategies and fund age have impacts on the performance of green funds; thirdly, as indicated by Carhart four-factor analysis, green funds’ profits are significantly worse than the market average; market risk, value and momentum factors can be more objective to explain the benefits of green funds; fourthly, profit sensitivity of green fund investors is not high. The contributions of this paper include as follows: firstly, it initiates a way to explore the development of green investment research from perspectives of environmental finance, socially responsible investment and financial innovation, aiming to facilitate a discussion on setting up a systematic research framework on emerging green investment; secondly, it is the first one in the literature to evaluate the performance of Chinese green funds; therefore, this paper has brought many new findings, contributing new and direct evidence for understanding green investment in China, as well as reference for policy making.

Health in all policies and urban green spaces: the baseline study of the GREENH-City project

Health in all policies (HiAP) is a key strategy for tackling social inequalities in health (SIH) and contributes to act on health determinants, among which environmental determinants play a major role. In France, cities have levers to act on environmental determinants such as green spaces. This communication aims to present the baseline study of the GREENH-City interventional participatory project (INCa n°2017-003). The general goal of the project is to identify the most promising interventions to operationalize HiAP at the city level and act on the social inequalities in health through green space policy in urban area. The baseline study will contribute to analyze the HiAP approach among the cities of the French Healthy Cities Network. The objective of this presentation is to provide profiles of the cities regarding the degree of maturity of the HiAP approaches. Methods Drawing on the HiAP analytical framework, a qualitative analysis will be conducted among 80 cities of the French Healthy Cities Network by using an online survey addressed to elected official and technicians from public health departments in the cities. Items will rely on the degree of maturity of HiAP approaches regarding the modes of collaborations between sectors, the consideration of health, social inequalities in health and green spaces accessibility equity. Results The survey will identify profiles of cities regarding their style of HiAP. These results, crossed with SIH indicators and green space indicators will define 6 cases. Conclusions The six cases should enable us to profile the cities in terms of their HiAP approaches and how they address social inequalities in health as part of their policies and interventions on green spaces.

Synthesizing the effects of green experiential quality, green equity, green image and green experiential satisfaction on green switching intention

Purpose This study aims to fill a conceptual gap by identifying the dimensions of green experiential quality and empirically examining the interrelationships among green experiential quality, green equity, green image, green experiential satisfaction and green switching intention. A multi-dimensional model is used as a framework to synthesize the effects of green experiential quality, green equity, green image and green satisfaction on green switching intention of green hotel customers. Design/methodology/approach The data used in this study were collected from a sample of 535 customers staying in one green hotel of Taipei City, Taiwan. Data were analyzed using structural equation modeling and hierarchical regression analysis. Findings The findings support a multi-dimensional model consisting of four dimensions (interaction quality, physical environment quality, access quality and administration quality) to conceptualize and measure perceived green experiential quality. Perceived green experiential quality significantly influences green equity and green image, which, in turn, result in green experiential satisfaction. Green switching intention is influenced by green experiential satisfaction and green image. However, outcome quality is not a component of perceived green experiential quality, which, in turn, insignificantly results in green experiential satisfaction. Green image plays a role in moderating the relationship between green experiential quality and interaction quality, outcome quality, access quality and administration quality. Practical implications To increase green experiential quality and green equity, enhance green image and green experiential satisfaction and decrease green switching intention, the finding of this study will help green hotel management to develop and implement market-oriented service strategies. Originality/value This is the first study to synthesize the effects of green experiential quality, green equity, green image and green experiential satisfaction on green switching intention in a green hotel setting.

Antecedents of green behavioral intentions: a cross‐country study of Turkey, Finland and Pakistan

AbstractQuality of life of the future generations depends on the efforts of current generations to protect environment. The purchase decisions based on their green behavioral intentions not only helps the society, but also helps companies to gain a green competitive advantage. In this study, the relationships between green satisfaction, green trust, green equity and behavioral intentions are examined. Data were collected from Turkey, Finland and Pakistan with self‐administered questionnaires regarding with green white goods. The hypotheses were tested with structural equation modeling. Results of a structural model reveal positive relationships green satisfaction, green trust and green brand equity across three countries. In addition, green brand equity plays a remarkable role in behavioral intentions towards green white goods in general. Managers should consider green trust, green satisfaction, and green brand equity while implementing green marketing strategies in a global marketplace.