Publicação
The role of green bonds in driving ESG performance and green innovation in europe
| Resumo: | This dissertation explores the role of green bonds as instruments of sustainable finance and their impact on corporate environmental performance and innovation. Motivated by increasing global commitments to achieve net-zero carbon emissions by 2050, the study investigates whether the issuance of green bonds leads to measurable improvements in Environmental, Social, and Governance (ESG) metrics and stimulates corporate green innovation. To address concerns regarding the credibility of these instruments, the analysis also includes an implied test for potential greenwashing. Furthermore, it examines whether these effects differ across market-based and bank-based financial systems, focusing on the European context. Using a panel dataset covering the period from 2011 to 2023, this research employs Propensity Score Matching (PSM) to mitigate selection bias, along with a multi-period panel data Difference-in-Differences (DID) model to estimate causal effects. The findings indicate that firms issuing green bonds tend to demonstrate stronger Environmental, Social, and Governance (ESG) performance and greater environmental innovation, regardless of the timing of the issuance event. While the green bond issuance is positively associated with environmental expenditures, emission reduction, and resource efficiency, no statistically significant post-issuance improvements were observed. Furthermore, the analysis finds no consistent evidence about the differences in the economic systems enhancing ESG performance and green innovation. Importantly, the findings indicate no evidence of greenwashing behavior, reinforcing the notion that companies utilise green bond proceeds for legitimate environmental purposes rather than for reputational enhancement. Overall, the results suggest that green bonds are effective instruments for financing environmentally focused initiatives; however, they may primarily reflect pre-existing corporate sustainability strategies rather than act as catalysts for change. These insights carry significant implications for advancing both the academic and practical understanding of assessing the true impact of green finance in facilitating the transition to a low-carbon economy. |
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| Autores principais: | Gomes, Amanda Zetzsche de Abreu |
| Assunto: | ESG Green bonds Green innovation Greenwashing |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Instituto Politécnico do Porto |
| Idioma: | inglês |
| Origem: | Repositório Científico do Instituto Politécnico do Porto |
| Resumo: | This dissertation explores the role of green bonds as instruments of sustainable finance and their impact on corporate environmental performance and innovation. Motivated by increasing global commitments to achieve net-zero carbon emissions by 2050, the study investigates whether the issuance of green bonds leads to measurable improvements in Environmental, Social, and Governance (ESG) metrics and stimulates corporate green innovation. To address concerns regarding the credibility of these instruments, the analysis also includes an implied test for potential greenwashing. Furthermore, it examines whether these effects differ across market-based and bank-based financial systems, focusing on the European context. Using a panel dataset covering the period from 2011 to 2023, this research employs Propensity Score Matching (PSM) to mitigate selection bias, along with a multi-period panel data Difference-in-Differences (DID) model to estimate causal effects. The findings indicate that firms issuing green bonds tend to demonstrate stronger Environmental, Social, and Governance (ESG) performance and greater environmental innovation, regardless of the timing of the issuance event. While the green bond issuance is positively associated with environmental expenditures, emission reduction, and resource efficiency, no statistically significant post-issuance improvements were observed. Furthermore, the analysis finds no consistent evidence about the differences in the economic systems enhancing ESG performance and green innovation. Importantly, the findings indicate no evidence of greenwashing behavior, reinforcing the notion that companies utilise green bond proceeds for legitimate environmental purposes rather than for reputational enhancement. Overall, the results suggest that green bonds are effective instruments for financing environmentally focused initiatives; however, they may primarily reflect pre-existing corporate sustainability strategies rather than act as catalysts for change. These insights carry significant implications for advancing both the academic and practical understanding of assessing the true impact of green finance in facilitating the transition to a low-carbon economy. |
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