Analysis of the Effect of Monetary Policy on Green Bonds in ASEAN-5 Countries
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This study aims to examine the impact of monetary policy on green bonds in ASEAN-5 countries in both the short and long term. The monetary policy variables include foreign exchange reserves, exchange rates, and reference interest rates, with trading volume as a supporting variable. This study uses quarterly data from 2016:Q1 to 2023:Q4 and applies the ARDL Pooled Mean Group (PMG) approach. The results show that, in the short term, all independent variables have no significant effect on green bonds. However, in the long term, foreign exchange reserves and interest rates have a negative effect, while exchange rates and trading volume have a positive effect on green bonds. These findings provide important implications for policymakers in promoting sustainable finance development.
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