OIL PRICE SHOCKS, ECONOMIC POLICY UNCERTAINTY, AND GREEN FINANCE: A CASE OF CHINA

This study investigates the long- and short-run effects of crude oil price (COP) economic policy uncertainty (EPU) on China’s green bond index (GBI) using quantile autoregressive distributed lag model. The empirical results show that COP EPU produce a significant positive negative influence GBI in long-run across most quantiles, respectively, but their counterparts are opposite direction only higher quantiles. Thus, major contributions made accordingly shown following aspects. findings emphasise importance understanding how affect market for first time. In addition, both captured, shocks primarily drive market. Finally, time- quantile-varying analyses adopted to explain nexus between GBI, which considers not different states also events occur time periods. Some detailed policies, such as unified effective market, an early warning mechanism fluctuation, prudent adjustments, beneficial stabilising finance