Green property finance and CO2 emissions in the building industry

Publication Name

Global Finance Journal

Abstract

Contributing about 40% of the world's annual greenhouse gas (GHG) emissions, the building industry is tasked with reducing its energy consumption and its carbon footprint in accordance with the Paris Agreement. This study investigates the relationship between green property finance and the building industry's CO2 emissions across 98 high-income and developing economies for the period 2012–2018. Our results show that although green property finance expansions are significantly and negatively related to the industry's CO2 emissions in the full sample, this result is more evident for developing nations. This is a significant outcome for these countries since many of them are experiencing rapid but unchecked population growth and strong oil consumption. Policies to maintain this development during the COVID-19 pandemic are crucial because this crisis has curtailed the availability of green finance facilities, which has either slowed down or reversed any progress made.

Open Access Status

This publication is not available as open access

Volume

51

Article Number

100696

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Link to publisher version (DOI)

http://dx.doi.org/10.1016/j.gfj.2021.100696