| Abstract [eng] |
This master's thesis evaluates the impact of green bond financing on the adoption of renewable energy in European Union (EU) countries during a critical period of heightened climate action. As the EU intensifies its commitment to climate neutrality and sustainable development, green bonds have emerged as a pivotal financial instrument for mobilizing private capital toward environmentally sustainable projects, particularly within the renewable energy sector. Despite the rapid escalation in green bond issuance across EU member states, empirical evidence regarding their actual contribution to renewable energy development remains sparse and fragmented. This study seeks to bridge this gap by providing a comprehensive, macro-level empirical assessment of the relationship between green bond issuance and renewable energy adoption, focusing on the period from 2015 to 2023. The research employs a quantitative panel data approach, utilizing annual data from EU countries. Renewable energy adoption is quantified by the share of renewable energy in gross final energy consumption, while green bond activity is represented through issuance volumes normalized by GDP. The analysis incorporates several critical macroeconomic and institutional control variables, including GDP per capita, CO₂ emissions per capita, energy intensity, population density, and various indicators of environmental governance. To ensure the robustness of the findings, advanced econometric techniques are deployed, including panel unit root tests, panel cointegration analysis, fixed-effects and random-effects regressions, as well as robustness checks that utilize lagged specifications, logarithmic transformations, and analyses of regional subsamples. The empirical results reveal a positive and statistically significant relationship between green bond issuance and renewable energy adoption across the EU. Notably, this relationship is more pronounced in countries demonstrating higher governance quality and higher income levels, underscoring the role of institutional and economic conditions in enhancing the effectiveness of green finance instruments. These findings highlight that the efficacy of green bonds is not solely dependent on the financial mechanisms themselves but also on the broader governance and economic context in which they operate. The implications of this study extend to policy-making within the European Union. The evidence provided herein underscores the necessity for stronger regulatory frameworks, enhanced transparency, and targeted strategies for green bond issuance. Such measures are crucial for maximizing the potential contributions of green bonds to achieving Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all, as well as for fulfilling the EU’s long-term climate objectives. In conclusion, this research contributes significantly to the literature on green finance by offering robust empirical evidence regarding the role of green bonds in supporting the transition to renewable energy. The findings advocate for a more integrated approach to green financing, emphasizing the importance of favorable institutional conditions in leveraging private capital toward sustainable energy solutions. |
