What the study found
The study found a bilateral, intricate relationship between natural gas prices and the green bond market. It reports that this relationship changes across market conditions and over time.
Why the authors say this matters
The authors conclude that green bonds are important for supporting sustainable development goals, and they suggest that financial strategies should be realigned to fit long-term sustainability goals. They also present natural gas as a transitional fuel in the energy transition.
What the researchers tested
The researchers examined the dynamic and distributional association between natural gas prices and the green bond market using a Quantile-on-Quantile approach. They used monthly data from 2013 to 2025 to capture nonlinear, asymmetric, and state-dependent interactions under different market conditions.
What worked and what didn't
The findings indicate that rises in natural gas prices are likely to have a negative short-run effect on green bond performance. In contrast, increases in the green bond market appear to have a positive short-to-medium-term effect on natural gas prices.
What to keep in mind
The abstract describes a complex relationship and states that the findings apply across changing market conditions, but it does not provide additional limitations or caveats in the available summary.
Key points
- Natural gas prices and the green bond market are described as having a bilateral, intricate relationship.
- Higher natural gas prices are likely to reduce green bond performance in the short run.
- A stronger green bond market appears to have a positive short-to-medium-term effect on natural gas prices.
- The study uses a Quantile-on-Quantile approach with monthly data from 2013 to 2025.
- The authors say the findings support long-term sustainability goals and reflect natural gas as a transitional fuel.
Disclosure
- Research title:
- Natural gas prices and green bonds show a changing two-way link
- 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
- OpenAlex record:
- View
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