THE EFFECTIVENESS OF GREEN BONDS ISSUED BY BANKS IN FACILITATING THE LOW-CARBON TRANSITION OF ECONOMY
DOI:
https://doi.org/10.5281/zenodo.20321188Keywords:
sustainable Finance, low-carbon transition, green bonds, structural equation modeling, institutional commitment, environmental sustainability.Abstract
It examines the effectiveness of green bonds being measured and influences how low-carbon strategies
are implemented and evaluated. Support for sustainable financing and carbon reduction at banking institutions is
significantly affected by environmental and institutional factors. The aim of this study was to identify the level of green
bond effectiveness and its five dimensions namely environmental sustainability, carbon reduction financing, institutional
commitment, financial performance, and policy compliance in commercial banks. The main purpose of this study was to
explore banking institutions’ perceptions of their environmental responsibilities and sustainable financing practices within
their operational years as financial intermediaries. This study used quantitative design involving an iterative process of
four cycles: data collection, matching procedure, structural analysis and model evaluation. A total of 240 respondents
from commercial banks were purposely selected and surveyed to obtain their perceptions on the sustainable financing
practices they received before and after their green bond implementation and the strategies that they employed within
their low-carbon transition process. The results indicate that the strategies adopted in this research reasonably enabled
students to be actively engaged in their learning process and sustainable awareness development among them. The
resultant propensity-score matching showed a better contribution to the structural model, providing support for the
predictive capability of the low-carbon framework. The findings and the implications for the improvement of banks’
sustainability performance are discussed. This study provides some theoretical and practical implications for improving
the banks’ financing strategies and their institutional development which aim to enhance the environmental qualities of
future banking systems.
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