Assessment of impacts of green bonds on renewable energy utilization efficiency

Due to the consumption of renewable natural resources caused by population growth, industrialization, and urbanization, renewable resources' effectiveness has become controversial in recent decades. This paper examines the effect of issued green bonds on the effectiveness of renewable natural resource utilization in 15 selected Asia-Pacific countries during 2012–2021. Conducting the Fully Modified Ordinary Least Squares (FMOLS) estimation, the preliminary results confirmed that the issued green bonds have positive and statistically significant impacts on renewable natural resource utilization efficiency in the short-term and long-term. However, the magnitude of the impacts is more extensive in the long-term context. Urbanization has a negative short-term coefficient, while it positively impacts the natural resource utilization efficiency in the long term. Inflation rate negatively affects renewable natural resource utilization efficiency. As practical policies, implementing operational plans to develop the green bonds market, promoting green foreign direct investment, efficient monetary policy to lower inflation rate, and enhancing digital green bonds are recommended.