A new look at the finance–environment nexus: How yield spread affects environmental quality in the United States DOI
Ümit Bulut, Nicholas Apergis, Cem Işık

et al.

Business Strategy and the Environment, Journal Year: 2024, Volume and Issue: unknown

Published: Oct. 22, 2024

Abstract Enhancing environmental quality is currently a key focus for policymakers. Furthermore, researchers are also prioritizing the investigation of novel variables that can influence quality. The yield spread commonly used as leading indicator business cycles in macro‐finance literature, providing information about future expectations regarding cycles. presents borrowing costs firms. None existing studies economics literature has tested impact on quality, implying level not been considered variable This study aims to fill this gap by evidence effect (between 2‐ and 10‐year government bonds) United States from June 1976 September 2023. results indicate an increase leads rise destruction. These suggest two considerable consequences. First, optimistic today lead overuse resources Second, firms' higher may be forcing them use less environmentally friendly production methods offset more expensive financing their profits. asserts companies should enhance sensitivity, policymakers adopt proactive stance, based other research demonstrates detrimental impacts regulation violations poor performances companies' stock prices financial performances.

Language: Английский

A new look at the finance–environment nexus: How yield spread affects environmental quality in the United States DOI
Ümit Bulut, Nicholas Apergis, Cem Işık

et al.

Business Strategy and the Environment, Journal Year: 2024, Volume and Issue: unknown

Published: Oct. 22, 2024

Abstract Enhancing environmental quality is currently a key focus for policymakers. Furthermore, researchers are also prioritizing the investigation of novel variables that can influence quality. The yield spread commonly used as leading indicator business cycles in macro‐finance literature, providing information about future expectations regarding cycles. presents borrowing costs firms. None existing studies economics literature has tested impact on quality, implying level not been considered variable This study aims to fill this gap by evidence effect (between 2‐ and 10‐year government bonds) United States from June 1976 September 2023. results indicate an increase leads rise destruction. These suggest two considerable consequences. First, optimistic today lead overuse resources Second, firms' higher may be forcing them use less environmentally friendly production methods offset more expensive financing their profits. asserts companies should enhance sensitivity, policymakers adopt proactive stance, based other research demonstrates detrimental impacts regulation violations poor performances companies' stock prices financial performances.

Language: Английский

Citations

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