Green bonds and the energy transition: From instrumental use to intrinsic value

Zhou, Peng ORCID: https://orcid.org/0000-0002-4310-9474, Ding, Wenjie ORCID: https://orcid.org/0000-0003-2774-5777, Mazouz, Khelifa ORCID: https://orcid.org/0000-0001-6711-1715 and Jin, Shijie 2026. Green bonds and the energy transition: From instrumental use to intrinsic value. Energy Economics 161 , 109503. 10.1016/j.eneco.2026.109503

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Abstract

Using bibliometric techniques, we classify green bonds literature into three main clusters: (i) asset-pricing research examining green bonds' connectedness with other assets; (ii) corporate-finance studies on the determinants of green bond issuance; and (iii) corporate-finance research on their environmental effects, such as carbon-emission reductions and renewable-energy deployment. Early studies primarily focused on pricing dynamics and market connectedness, whereas recent research emphasizes the intrinsic environmental value of green bonds, particularly their role in financing renewable-energy projects and supporting climate-policy objectives. This review integrates these strands into a unified energy-finance framework. On the theoretical side, we map green bond studies along a spectrum from instrumental to intrinsic value. On the methodological side, we synthesize the principal identification strategies used to address endogeneity, a challenge central to establishing credible links between green-bond financing and energy-transition outcomes. Building on these foundations, we set out a future research agenda that highlights underexplored issues concerning cross-market dynamics during energy crises, the effectiveness of green bonds in accelerating decarbonization, and the policy implications for energy-market regulators. Taken together, our findings provide a structured foundation for advancing research on green bonds within energy economics and climate finance.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Publisher:	Elsevier
ISSN:	0140-9883
Date of First Compliant Deposit:	20 July 2026
Date of Acceptance:	7 July 2026
Last Modified:	03 Aug 2026 08:16
URI:	https://orca.cardiff.ac.uk/id/eprint/188333

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