Work

Green bonds and futures contracts in cattle. Green economy transition

Year: 2025

Type: article

Abstract: In this study, we examine the connectedness and spillovers between futures contracts in cattle and corporate green bonds, a relationship that has received little attention in the relevant literature. Our analysis extracts significant results, most importantly a bidirectional, time-varying causal relationship from green bonds to feed cattle. The transmission from green bonds to feed cattle becomes clearer when using a Bayesian VAR model that accounts for the presence of structural breaks. Our analysis has important implications for several stakeholders. For investors, our findings are useful for those aiming to achieve better risk-adjusted performance and sustainability in their portfolios. For policymakers, the results can assist in designing and implementing policies aimed at mitigating climate change risk and fostering a transition to a more sustainable economy. Significant implications are also derived for nutritionists, who can now better understand the economic and environmental effects of their choices on their customers and society.

Source: Finance Research Open

DOI: 10.1016/j.finr.2025.100037

Authors: Athanasios Tsagkanos, Costas Siriopoulos

Institutions: University of Patras, Zayed University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Zero hunger

Open Access status: gold

Estimated APC paid: $1,000