The Evolution and Future Trajectory of Green Investment: A Systematic Literature Review
DOI:
https://doi.org/10.31603/conference.17384Keywords:
green investment, financial performance, firm, listed company, SLRAbstract
This systematic literature review examines the effects of green investment on environmental outcomes. Climate change mitigation has been widely investigated across disciplines, and green investment has emerged as a practical strategy to curb pollution and enhance environmental quality. We analyzed 20 empirical and qualitative studies identified through PoP software and Google Scholar, using selection criteria that included English language, publication quality, and relevance to economics, management, or finance. Findings indicate that financial markets have incorporated environmentally oriented instruments and indices—commonly termed green equities, green bonds, and green funds—across stock, bond, and mutual fund segments. In banking, green credit facilities are being introduced to support environmentally responsible firms. Future research could fruitfully compare green investment adoption across sectors using established environmental health indices over varying time windows. In capital markets, corporate insiders and regulators should address pollution impacts by implementing measures that reduce environmental harm. Investors are encouraged to prioritize issuers with demonstrable commitments to mitigating climate change.
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