Green Finance Risk Management under Peak Carbon Dioxide Emissions and Carbon Neutrality Goals

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Energy and Environment: Economics, Finance and Policy".

Deadline for manuscript submissions: closed (30 September 2023) | Viewed by 17852

Special Issue Editors


E-Mail Website1 Website2
Guest Editor
1. School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
2. School of Intellectual Property, Wuhan Institute of Technology, Wuhan 430205, China
3. Center for High-Quality Collaborative Development of Resources, Environment and Economy, Wuhan Institute of Technology, Wuhan 430205, China
Interests: green finance; technology finance; resource and environment economy
1. School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
2. School of Intellectual Property, Wuhan Institute of Technology, Wuhan 430205, China
3. Center for High-Quality Collaborative Development of Resources, Environment and Economy, Wuhan Institute of Technology, Wuhan 430205, China
Interests: energy economics; regional economics; green finance
1. School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
2. School of Intellectual Property, Wuhan Institute of Technology, Wuhan 430205, China
3. Center for High-Quality Collaborative Development of Resources, Environment and Economy, Wuhan Institute of Technology, Wuhan 430205, China
Interests: economic environment; financial theory and policy

E-Mail Website
Guest Editor
School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
Interests: energy efficiency; energy exploitation; energy investment; efficiency and productivity analysis; pollution and carbon reduction; digital industrialization; manufacturing value chain
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Special Issue Information

Dear Colleagues,

Green finance requires financial institutions to consider more environmental and climate factors in the investment and financing decision-making process, and to guide more market resources to green industries through policy incentives and financial product innovation. We have achieved much consensus in green finance research, but we are not rich in risk awareness, management and research on green finance. Focusing on green financial risks under the peak carbon dioxide emissions and carbon neutrality goals will help to improve the green financial development system and maximize the positive role of green finance.

At present, due to information asymmetry, the long tail effect caused by the rapid development of inclusive finance, imperfect institutional mechanisms and other factors, the application of green finance (science and technology finance, financial technology, green credit, green insurance, green bonds, etc.) has seen market participants with lower qualifications conducting financial transactions beyond their risk-bearing scope, and the development of green finance does not match the existing laws and regulations. The improper use of technology in the financial field and the lagging supervision have resulted in compliance, business and technical risks. On the one hand, green financial risk has the characteristics of complexity, endogeneity, imbalance, etc. Green finance has failed to completely eliminate the credit risk, market risk and liquidity risk of traditional financial transactions. Indeed, because the use of information technology breaks the limits of risk transmission and accelerates the transmission speed, financial risks become more complex and difficult to control. On the other hand, the updating speed of regulatory measures lags behind the development speed of green finance, which weakens the regulatory capacity of regulators on the financial market and has a negative impact on the fairness and operational efficiency of the financial market.

Green finance is in a period of rapid development, and the development status is not sufficiently mature. There is no mature experience to follow in the field of green finance supervision, and it is still necessary to deepen the research on green finance technology and strengthen the construction of cross-disciplines. In addition, the current international exchange of green finance is still mainly at the level of traditional green financial products and policy incentives. The exchange and cooperation of cases, technologies and products related to the application of financial technology is still very limited. The development and application of financial technology in China cannot be separated from the international whole. China’s huge market and application potential should also provide a large space for international cooperation.

We hope that through this Special Issue we can further clarify the possible risks in the implementation of the peak carbon dioxide emissions and carbon neutrality goals, and support the resolution of green financial risks with the help of data statistics and policy review.

Prof. Dr. Shuke Fu
Dr. Xiaofan Li
Dr. Jiali Tian
Dr. Jiachao Peng
Guest Editors

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Keywords

  • green financial risk prevention
  • green financial asset management and low-carbon energy transformation
  • environmental regulation and green financial risk
  • coordinated development of science and technology finance and green finance
  • financial technology innovation and green financial risk management
  • information disclosure and green financial risk prevention
  • prevention of green financial risks in the process of industrial transformation
  • climate change and green financial risk management
  • technological innovation and green financial risk prevention
  • energy investment and green financial risks

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Published Papers (3 papers)

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16 pages, 1143 KiB  
Article
Fossil Fuel-Based versus Electric Vehicles: A Volatility Spillover Perspective Regarding the Environment
by Shailesh Rastogi, Jagjeevan Kanoujiya, Satyendra Pratap Singh, Adesh Doifode, Neha Parashar and Pracheta Tejasmayee
J. Risk Financial Manag. 2023, 16(12), 494; https://doi.org/10.3390/jrfm16120494 - 22 Nov 2023
Viewed by 2388
Abstract
Due to environmental concerns, electric vehicles (EVs) are gaining traction over fossil fuel-based vehicles. For electronic devices, including vehicles, copper is the key material used for building. This situation draws attention to the impact of copper prices, crude oil prices, and exchange rates [...] Read more.
Due to environmental concerns, electric vehicles (EVs) are gaining traction over fossil fuel-based vehicles. For electronic devices, including vehicles, copper is the key material used for building. This situation draws attention to the impact of copper prices, crude oil prices, and exchange rates on the economic viability of using EVs over fossil fuels. We use the volatility spillover effect (VSE) to determine the financial viability of these two types of vehicles in the context of environmental issues. Daily data on copper prices, crude oil, exchange rate, and the BSE100 ESG (“Bombay Stock Exchange 100 Environmental, Social and Governance”) index are taken from 1 November 2017 to 20 September 2022. Two popular multivariate GARCH (“Multivariate Generalized Autoregressive Conditional Heteroscedasticity”) family models, i.e., the BEKK (“Baba–Engle–Kraft–Kroner”)-GARCH (BG) and DCC (“Dynamic Conditional Correlation”)-GARCH (DG) models, are utilized to find volatility connections between these variables. These are appropriate GARCH models to observe the volatility dependence of one market on another market. It is found that there exist volatility effects of copper and exchange rate on the S&P BSE100 ESG Equity Index Price, which we will refer to here as ESG. However, crude oil is found to be insignificant for ESG. The novelty of this study is in the use of volatility spillover to determine economic viability. The volatility effects of copper prices are positive for ESG in the short run and negative for long-term volatility. The exchange rate has a positive volatility effect on ESG in the long run. Surprisingly, we find that EVs are technologically better than fossil fuel-based vehicles as a possible sustainable energy source. We observe studies that have raised similar concerns about EVs’ lack of business sense compared to fossil fuels. However, using VSE to explore financial viability offers a fresh perspective. Based on the findings of the current study, it is recommended that policymakers and researchers revisit their support for EVs as an alternate and sustainable source of energy. Full article
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21 pages, 1439 KiB  
Article
Integrating Bioeconomy Principles in Bionic Production: Enhancing Sustainability and Environmental Performance
by Sanja Tišma and Mira Mileusnić Škrtić
J. Risk Financial Manag. 2023, 16(10), 437; https://doi.org/10.3390/jrfm16100437 - 8 Oct 2023
Viewed by 2098
Abstract
The integration of bioeconomy principles in bionic production holds promise for enhancing sustainability and resource efficiency. This scientific article aims to investigate the potential of bioeconomy-driven approaches in bionic production, focusing on the utilization of renewable biological resources, sustainable manufacturing techniques, and circular [...] Read more.
The integration of bioeconomy principles in bionic production holds promise for enhancing sustainability and resource efficiency. This scientific article aims to investigate the potential of bioeconomy-driven approaches in bionic production, focusing on the utilization of renewable biological resources, sustainable manufacturing techniques, and circular design strategies. The research questions guide the exploration of resource utilization, manufacturing techniques, waste reduction, environmental impact assessment, and economic considerations. The article presents a conceptual framework that integrates bioeconomy principles throughout the life cycle of bionic products, validating the proposed concepts and methodologies. By embracing bioeconomy principles, this article highlights the potential of bionic production to contribute to sustainable development, resource conservation, and the transition toward a bioeconomy. Full article
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17 pages, 4956 KiB  
Article
Emerging Research Trends in Green Finance: A Bibliometric Overview
by Sagarika Mohanty, Sudhansu Sekhar Nanda, Tushar Soubhari, Vishnu N S, Sthitipragyan Biswal and Shalini Patnaik
J. Risk Financial Manag. 2023, 16(2), 108; https://doi.org/10.3390/jrfm16020108 - 10 Feb 2023
Cited by 19 | Viewed by 12698
Abstract
Green finance is significant since it is the first organized effort by the financial industry to link financial performance with a positive environmental impact. Green finance products are being developed appropriately to achieve sustainability. The present study employs a fundamental bibliometric methodology to [...] Read more.
Green finance is significant since it is the first organized effort by the financial industry to link financial performance with a positive environmental impact. Green finance products are being developed appropriately to achieve sustainability. The present study employs a fundamental bibliometric methodology to assess the current state and progress of academic research on green finance. 1748 papers are taken for this study. Data are extracted from a scholarly database i.e., SCOPUS and for network analysis, VOSviewer software is used. The present paper is focused on six research questions. Information is gathered to examine the above research questions and network maps are applied. We examined year-wise document publications, types of documents, subject areas, most influential articles, different journal sources, co-authorship of countries, and co-occurrence of keywords of green finance. We categorized keywords into clusters and discovered new trends in green finance. The paper also highlighted the recent issues and challenges. The study has also certain limitations and it is concluded by providing implications and suggestions for future studies. At last, this paper will give more insights to researchers, academicians, and others to discover the research gaps in this field of green finance. Full article
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