Estimating the causal impact of the Paris agreement on the ESG market: A Bayesian structural time-series approach.
Saved in:
| Title: | Estimating the causal impact of the Paris agreement on the ESG market: A Bayesian structural time-series approach. |
|---|---|
| Authors: | Naysary B; Birmingham City University, Business School, B5 5JU, Birmingham, United Kingdom. Electronic address: babak.naysary@bcu.ac.uk., Kamal JB; Monash University Malaysia, School of Business, Jalan Lagoon Selatan, Bandar Sunway, 47500, Subang Jaya, Selangor, Malaysia., Mirpoorian SN; The University of Sheffield, School of Mathematical and Physical Sciences, Western Bank, Sheffield, S10 2TN, United Kingdom., Shrestha K; Sunway Business School, Sunway University, Malaysia. |
| Source: | Journal of environmental management [J Environ Manage] 2025 Dec; Vol. 395, pp. 127829. Date of Electronic Publication: 2025 Nov 05. |
| Publication Type: | Journal Article |
| Language: | English |
| Journal Info: | Publisher: Academic Press Country of Publication: England NLM ID: 0401664 Publication Model: Print-Electronic Cited Medium: Internet ISSN: 1095-8630 (Electronic) Linking ISSN: 03014797 NLM ISO Abbreviation: J Environ Manage Subsets: MEDLINE |
| Imprint Name(s): | Original Publication: London ; New York, Academic Press. |
| MeSH Terms: | International Cooperation*, Bayes Theorem ; Climate Change ; Paris |
| Abstract: | Competing Interests: Declaration of competing interest No conflict of interest exists. This study uses a Bayesian structural time-series model to examine the causal impact of the Paris Agreement on Environmental, Social, and Governance (ESG) markets across 18 countries. The research addresses key gaps in understanding the long-term effects of international climate agreements on sustainable finance. By analyzing MSCI ESG Leaders indices from 2013 to 2022, the study reveals significant variations in the agreement's impact across different economies. Countries like China and Indonesia experienced substantial increases in their ESG indices (31.01 %), while others like the UK saw decreases (-2.63 %). A structural break analysis serves as a robustness test, confirming significant shifts in ESG indices coinciding with the Paris Agreement's adoption in 2015. The study also highlights subsequent structural breaks in 2017, 2019, and 2021, reflecting ongoing regulatory changes and global events affecting ESG markets. This research contributes to a more nuanced understanding of how international climate policies shape sustainable investment practices, offering valuable insights for policymakers and investors navigating the evolving landscape of climate finance. (Copyright © 2025 The Authors. Published by Elsevier Ltd.. All rights reserved.) |
| Contributed Indexing: | Keywords: Bayesian structural time-series; ESG; Paris agreement; Structural breaks |
| Entry Date(s): | Date Created: 20251106 Date Completed: 20251203 Latest Revision: 20251203 |
| Update Code: | 20251203 |
| DOI: | 10.1016/j.jenvman.2025.127829 |
| PMID: | 41197483 |
| Database: | MEDLINE |
Full Text Finder 
Nájsť tento článok vo Web of Science | Abstract: | Competing Interests: Declaration of competing interest No conflict of interest exists.<br />This study uses a Bayesian structural time-series model to examine the causal impact of the Paris Agreement on Environmental, Social, and Governance (ESG) markets across 18 countries. The research addresses key gaps in understanding the long-term effects of international climate agreements on sustainable finance. By analyzing MSCI ESG Leaders indices from 2013 to 2022, the study reveals significant variations in the agreement's impact across different economies. Countries like China and Indonesia experienced substantial increases in their ESG indices (31.01 %), while others like the UK saw decreases (-2.63 %). A structural break analysis serves as a robustness test, confirming significant shifts in ESG indices coinciding with the Paris Agreement's adoption in 2015. The study also highlights subsequent structural breaks in 2017, 2019, and 2021, reflecting ongoing regulatory changes and global events affecting ESG markets. This research contributes to a more nuanced understanding of how international climate policies shape sustainable investment practices, offering valuable insights for policymakers and investors navigating the evolving landscape of climate finance.<br /> (Copyright © 2025 The Authors. Published by Elsevier Ltd.. All rights reserved.) |
|---|---|
| ISSN: | 1095-8630 |
| DOI: | 10.1016/j.jenvman.2025.127829 |