The Corporate Economic Performance of Environmentally Eligible Firms Nexus Climate Change: An Empirical Research in a Bayesian VAR Framework

Corporate economic performance and its association with carbon emissions has been the subject of extensive research within last few decades. The present study examines green firms as reflected in Financial Times Stock Exchange Environmental Opportunities Index Series (FTSE EO) emissions, incorporating role two more indices, namely Baltic Clean Tanker (BAIT) EUR/USD exchange rate. methodology employed is Bayesian Vector Autoregression Model (BVAR). Our findings confirm interlinkages among variables studied. More specifically, based on impulse response analysis, direction causality two-way. to a shock other negative for case rate (an index representing conventional energy sources), while it positive FTSE EO. However, most important finding return steady state after nine or ten periods. This result very significant since global environmental agreements along conditions resources may well lead limitations framework well-organized targeted climate change mitigation strategy.