What the study found
The study found a bilateral relationship between natural gas prices and the green bond market. The pattern changes over time and depends on market conditions.
Why the authors say this matters
The authors conclude that green bonds are important for supporting sustainable development goals, but their interaction with transitional energy markets like natural gas is nonlinear and changes over time. The findings indicate that financial strategies may need to be realigned with long-term sustainability goals.
What the researchers tested
The researchers used a Quantile-on-Quantile approach, which examines how different parts of one variable's distribution relate to different parts of another's. They analyzed monthly data from 2013 to 2025 to study nonlinear, asymmetric, and state-dependent interactions between natural gas prices and the green bond market.
What worked and what didn't
The results indicate that rising natural gas prices are likely to have a negative short-run effect on green bond performance. In contrast, increases in the green bond market have a short-to-medium-term positive effect on natural gas prices, which the abstract links to natural gas's role as a transitional fuel.
What to keep in mind
The abstract does not describe specific limitations beyond the study's focus on monthly data from 2013 to 2025. The summary provided does not include details on data sources, robustness checks, or caveats about generalizing the findings.
Key points
- The study reports a bilateral relationship between natural gas prices and the green bond market.
- Higher natural gas prices are linked to weaker green bond performance in the short run.
- Growth in the green bond market is linked to higher natural gas prices in the short-to-medium term.
- The relationship is described as nonlinear, asymmetric, and dependent on market conditions.
- The authors say the findings may help align financial strategies with long-term sustainability goals.
Disclosure
- Research title:
- Natural gas prices and green bonds affect each other over time
- Authors:
- Jiawen Wu, Jingping Li, Xiaofei Jin, Chi-Wei Su
- Institutions:
- Central University of Finance and Economics, Qingdao University, Shanxi University of Finance and Economics, Shanxi University of Finance and Economics
- Publication date:
- 2026-02-27
- DOI:
- 10.3390/su18052277
- OpenAlex record:
- View
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