Correlation and Dynamic Volatility Spillover between Green Investing Market, Coal Market, and CO2 Emissions: Evidence from Shenzhen Carbon Market in China

With the continuous expansion scale of carbon market and the development of carbon trading mechanism, carbon emission right, as a new financial asset, is being brought into the category of asset allocation by more and more investors. As the burning of coal is the major source of carbon dioxide, China is facing serious ecological and environmental problems, which restrict the development of low-carbon economy. In order to reach the carbon dioxide emission reduction targets and promote the development of green investment market, the carbon market should be a good emission reduction measure. The correlation and dynamic volatility spillover among coal, carbon, and green investing markets are becoming a hot topic for current research. The paper applies both VAR-GARCH-DCC and VAR-GARCH-BEKK models to draw some significant conclusions. (1) The green investment market, coal market, and Shenzhen carbon market show obvious time-varying correlation, and the volatility of the green investment market is higher. (2) There is a bidirectional Granger causality between green investing and coal markets. (3) The investment portfolio and hedging mechanism of the market are established to reduce the risk and help investors obtain higher returns.

«Green» Economy and «Green» Investments in Russia

The authors of this scientific paper examine the current situation in the Russian Federation associated with the pollution of water and the atmospheric resources, with the problem of production and consumption waste accumulation, and draw their attention to the imperfection of statistical information, which does not allow for an objective assessment of the environmental situation. The quality of natural resources is not improving despite the statistical decrease in emissions and discharges of pollutants. They concluded an inconsistency of the economic development in the Russian Federation with the principles of sustainability and the “green” economy. It is necessary to intensify investment activities to protect the natural environment, in order to change the situation. At present, the share of the environmental investments in all national economic capital investments is negligible - less than 1%. The sluggish dynamic of investment processes led to insufficient commissioning of the main environmental funds. Recently, the situation has worsened in connection with the sequestration of the national project “Ecology” due to the pandemic problems. The article is devoted to the analyses of the “green” investment processes in Russia. The author’s definition of “green” investment is given.

Rethinking the Prospects of Sustainable Finance and Challenges of Agribusiness Transformation in Nigeria

The chapter explicates the need to rethink the prospects of sustainable finance (SF) for agribusiness transformation in spite of the challenges facing the sector in Nigeria. It extends to highlighting the implications of the nexus on entrepreneurship development. After a triangular data analysis using the world development indicators (2000-2016) and scholarly articles, the authors found that the prospects of SF are enormous: (1) Nigeria has a modest agricultural growth performance in the crop, food, livestock, and cereal production that could support SF; and (2) SF options such as green loans, green bonds, green credit, green investment funds, green mortgage scheme, and other green financial support instruments could be suitable for agribusiness transformation in the country. Also, the content analysis revealed there are 13 challenges facing agribusiness transformation in the country, and these have harmed the vegetation, farmland, and ocean leading to low productivity. The authors contribute to the literature by identifying SF options as a game-changer for agribusiness transformation.

The Effects of Green Financial Development on Economic Growth in Pakistan

Sustainable development is now a mantra for which every country is striving for it and green finance, and green financial development which is advancement in financial activities harmonized with environmental protection and ecological balance, is considered as the foremost solution for it. Keeping in view the importance of green financial development for the economic growth, this study aims to examine the effects of green financial development such as green credit, green securities, green insurance, green investment, and foreign direct investment on the economic growth of Pakistan. The time series has extracted from World Development Indicators (WDI) and State Bank of Pakistan (SBP) for the period 1981 to 2019. For the analysis purpose, Autoregressive distributive lag (ARDL) and Granger casualty have been executed. The findings established empirically that green financial development such as green credit, green securities, green insurance, green investment, and foreign direct investment have a positive impact on the economic growth of Pakistan. These findings provide the insight to the regulators that they should enhance their focus towards green financial development that is imperative for the economic growth of the country.