{"paper_id":"2717d0e5-e85b-479e-a893-56f0d4fb150b","body_text":"Global green finance: deaths from air pollution and democracy index | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Global green finance: deaths from air pollution and democracy index Marcella Lucchetta This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-3961708/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The condition of our planet's environment is deteriorating, which is creating difficulties for all living beings on Earth. However, there is potential for many prosperous nations to take more action to fight against climate change, as suggested by Lucchetta in 2023. It's worth questioning why the implementation of climate policies is not being expedited. This study indicates that: a) the level of democracy in a country has a negative correlation with green investments, which implies that it plays a significant role (Farzin and Bond 2006); b) investing in green bonds can reduce deaths caused by CO2 emissions; c) the study provides statistics and comparisons between China, USA, Europe, and Arab countries. The methology utilized unbalanced panel data from 1985 to the present for the United States and Europe and from 1990 onwards for the United Arab Emirates and China. The data was analyzed using the Generalized Least Square (GLS) method. Social science/Environmental studies Social science/Finance Figures Figure 1 Figure 2 I. Introduction The issue of climate change and its consequences has become increasingly urgent, as pointed out by Mazzucato (2022), requiring enormous financial resources. It's not just about having enough financial resources. The current scientific paradigm demands a significant shift in our understanding, as evidenced by the concept of Anthropocene risk put forth by Keys et al. (2019). This concept emphasizes the complexity of the interconnections between various factors, necessitating a broader definition of systemic risk. It has been on the agenda since the recent COP28 held in Expo City Dubai in November 2023, following the well-known Paris Agreement of 2015 where EU leaders committed to achieving climate neutrality by 2050. However, these targets are still far from being met. The Ecological Transition requires a significant effort from both public and private sectors to achieve its important goals. This paper focuses on Green Bonds and utilizes data collected by the International Monetary Fund (IMF) and the World Bank (WB). Arora and Gurung (2023) emphasize the need to consider human dimensions in economic matters, especially in global environmental governance, in their recent study. Carleton and Hsiang (2016) demonstrate the significant impact of weather on social and economic aspects. Our research shows, statistically, that the opposite is also true: lack of democracy and a low Gini Index affect climate mitigation and investment in Green Bonds. This work presents several innovations. First, to our knowledge, it is the only one that combines environmental and social variables and includes the United Arab Emirates. Farzin Bond (2006) provides a reduced-form model of the relationship between environmental preferences, the degree of democratization of political institutions, and realized environmental policy. Their pioneering work analyzes other geographical areas, different from ours and does not include Arab countries. In any case, their results are important because they confirm the environmental philosophy that links democracy and green policy. The consideration of how the Gulf Cooperation Council (GCC) brings together six Arab countries (including the United Arab Emirates) compared to other Macro Areas is revolutionary. Second, the study reveals significant correlations between social inequalities, democracy, and investments in green bonds. The findings are statistically robust and valuable for policymakers. Shi and Moser (2021) have discovered significant differences in the actions of the US government, private sector, and society. These differences have led to investments in infrastructure that do not account for climate change and reforms in financial and other sectors that do not prioritize justice. In addition, the authors highlight the alarming increase in social vulnerability to the impacts of climate change. The transition is arduous and requires a global mindset shift. Palmer (2022) has shown that there is great despair surrounding the current level of investment in renewable energy projects and energy efficiency projects. According to the author, this investment is not enough to achieve the goals established by the international climate agreements. The author also points out that there is a serious issue with greenwashing. This study examines how different regions invest in Green Bonds, what factors affect people's health (specifically, deaths caused by CO2), and how the level of democracy in a country affects its ability to achieve environmental goals. The analysis suggests that countries with powerful elites and low levels of democracy may be less attentive to environmental issues. For example, such elites may be wealthy due to their oil holdings and have influence over national leaders, while also having access to top-notch healthcare if needed. Although Naeem et al (2023) have made efforts in clean energy in the UAE, our work is the first to compare these areas with respect to green investments and social variables. Palmer (2022) has expressed great concern about the insufficient level of investment in renewable energy projects and energy efficiency projects. According to him, this is a major obstacle in achieving the goals set by the international climate agreements. The author also highlights the serious problem of greenwashing, which he believes deserves a separate paper to analyze credit allocation policies and study incentives for firms to act responsibly, particularly in specific macro-regions. The rest of the paper is organized as follows. Section II introduces the motivation of the work and the Macro-Regions subject of analysis. Section III presents the methodology; the results are econometrically robust. Finally, section IV concludes. II. MOTIVATION Achieving Environmental, Social and Governance (ESG) objectives, not just the green ones, require coordination among different stakeholders. According to Alkemade and Hekkert (2010), uncoordinated initiatives are less likely to be effective. The urgency and importance of ESG objectives cannot be ignored anymore and require a long-term and coordinated effort. This effort needs to involve all the macro-areas globally that are connected by globalization and increasingly close interrelations, and that are moving towards development. This process must be harmonious and respectful of the social and environmental profile of the communities we live in. However, few studies[2] have compared and contrasted different cultures and countries, and this could result in poor outcomes during diplomatic negotiations (e.g., COP28). The GCC Exchanges Committee (which includes Saudi Arabia among Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE in view of their special relations, geographic proximity) was added quickly and with great push. Collaborating with other countries and regions is crucial. We must learn how to work together, breaking down any cultural or geographical barriers that may hinder our progress. To achieve our goals, we must act as a united front, even when faced with challenges. The first step towards this goal is to gain a deeper understanding of different cultures and the dynamic changes that are occurring in many countries. Based on the data from Bloomberg's Capital Markets League Tables, the UAE leads the regional green bond league tables with $10.7 billion in sales. During UAE's COP28 year, the country issued $7.95 billion in debut sustainable debt. Moreover, the UAE ministry of finance has plans to issue bonds and sukuk worth $1.29 billion in Q1 2024, which is an unprecedented push. These developments highlight the growth and development of these countries, as they produce significant issues and contribute to continuous development. They are also issuing large sums of money in green bonds, indicating their commitment to sustainability. Although Cop28 had some level of satisfaction, the UAE countries are now investing more in environmental issues. The econometric estimates of this study indicate that democracy has played a significant role in the attention given to these issues. It can be inferred that countries with small, wealthy social classes who have access to all kinds of health services have shown little concern for the rest of the population, who are often in disadvantaged conditions. However, international discussions have motivated these countries to focus on environmental issues. III. METHODOLOGY The statistical methodology employs Generalized Last Squares (GLS) unbalanced panel regressions with random effects. The data is collected from the International Monetary Fund and the World Bank. The GLS is typically used for estimating the unknown parameters in a model when there is a certain degree of correlation between the residuals in the regression model. The dataset is yearly and spans from 1985 or 1990 (the period from which we have data on green bonds) to 2022. The results are highly robust and innovative. A greater number of green bonds implies a positive correlation with CO2 emissions, and the other variables are even more astonishing. The study analyzed Macro-Regions including the United Arab Emirates (UAE), United States (US), China, and Europe. This is the first study of its kind conducted in the UAE. The panel data on Green Bonds for the US and Europe starts from 1985, while for China it is available from 2014 and from 1990 for the UAE. As definition of the IMF Green Bonds are any type of self-labelled fixed income instruments (by Country, Billion US Dollars) where the proceeds will be exclusively directed to finance or re-finance, in part or in full, new and/or existing green projects. It is regarded as a climate mitigation and adaptation tool. The Deaths air pollution is the Share of deaths attributed to air pollution. The Democracy index is based on the expert assessments and index by V-Dem. It captures to which extent political leaders are elected under comprehensive voting rights in free and fair elections, and freedoms of association and expression are guaranteed. It ranges from 0 to 1 (most democratic). Table 1 reproduces the statistical regression between the amount of green bonds, annual CO₂ emissions, deaths from CO₂ pollution and the democracy index. All the result are significant (p-statistics equal to zero). It has been observed that the investment made in green bonds is slightly higher than the increase in emissions, which is measured at 1.17 tons of annual CO2. This suggests that there is some awareness among investors about the need to compensate for CO2 with suitable measures. However, it should be noted that this analysis does not take into account the issue of \"green washing\" or the actual effectiveness of the money spent. According to recent research, investing in green bonds can reduce deaths caused by air pollution. The study finds that there is a negative and significant coefficient between air pollution and deaths. By investing in green bonds, approximately 0.81% of people's lives can be saved annually. The study also highlights that democracy plays a vital role in this aspect. The coefficient regarding democracy is very high and significant, which means that it provides a fundamental understanding of the relationship between democracy and air pollution. Specifically, the coefficient is -15.89. It is possible to explain the results by considering that countries that are very rich and produce oil tend to have a low democracy index. This is because the wealthy social classes in these countries are not very interested in spending money on environmental measures that are visible to the public. However, the same individuals who own the oil wells have access to the most advanced medical treatments in the event of illness and can travel to other countries. The data and regressions presented here confirm this intuitive effect. IV. Conclusion and Policy Implications This study combined environmental variables with social and health indicators. The result is that there is a clear connection between these dimensions. This is the first work that measures the cost of the lack of democracy on environmental investments. This work must be continued with a view to understanding all global risks as they are interconnected. In fact, our research agenda includes the analysis and measurement of Helbing's concept (2013). Together with all the WEF Global Reports which every year list pieces of a mosaic of risks that increasingly need to be recomposed and understood. References Alkemade, F., and Hekkert, M. P. (2010). Coordinate green growth. Nature , 468 (7326). Carleton, T. A., and Hsiang, S. M. (2016). Social and economic impacts of climate. Science, 353(6304), aad9837. Farzin, Y. H., and Bond, C. A. (2006). Democracy and environmental quality. Journal of Development Economics, 81(1), 213-235. Keys, P. W., Galaz, V., Dyer, M., Matthews, N., Folke, C., Nyström, M., & Cornell, S. E. (2019). Anthropocene risk. Nature Sustainability, 2(8), 667-673. Helbing, D. (2013). Globally networked risks and how to respond. Nature, 497(7447), 51-59. Lucchetta, M. (2023). Climate bonds: Are they invested efficiently?. Journal of Environmental Management, 345, 118864. Mazzucato, M. (2022). Financing the green new deal. Nature Sustainability, 5(2), 93-94. Naeem, M. A., Sadorsky, P. and Karim, S. (2023). Sailing across climate-friendly bonds and clean energy stocks: An asymmetric analysis with the Gulf Cooperation Council Stock markets. Energy Economics, 126, 106911. Palmer, L. (2022). Green energy financing. Nature Sustainability, 5(11), 910-911. Shi, L., and Moser, S. (2021). Transformative climate adaptation in the United States: Trends and prospects. Science, 372(6549), eabc8054. Tables Table 1 is available in the Supplementary Files section. Footnotes [2] Naeem, Sadorsky and Karim, S. (2023). Additional Declarations There is NO Competing Interest. Supplementary Files Table1.docx Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {\"props\":{\"pageProps\":{\"initialData\":{\"identity\":\"rs-3961708\",\"acceptedTermsAndConditions\":true,\"allowDirectSubmit\":true,\"archivedVersions\":[],\"articleType\":\"Article\",\"associatedPublications\":[],\"authors\":[{\"id\":273723385,\"identity\":\"6600275a-c34c-41f4-aa41-07465a35d40e\",\"order_by\":0,\"name\":\"Marcella Lucchetta\",\"email\":\"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAuElEQVRIiWNgGAWjYBACPiBmBjH4gfgAEPMQ1MIG0WIgIdkA1UJQD1yLwQGoCGEtEskPPxdU/KkzvpF78DBPBYOMPWEtacbSM84YSJjdyEs4zHOGGIdJ5LAx87aBtOQYHJzZRrSWfwYSxjNAWv4RraUB6H2JHIMDHxuI0cLzzFia55ix5IwzbwwOfDgmwcNzgIAWfnZgiPHUyPHzt+cYf0iosbFnbyBkDRqQIFH9KBgFo2AUjAKsAADIaTFkRZLY+QAAAABJRU5ErkJggg==\",\"orcid\":\"https://orcid.org/0000-0002-7253-8104\",\"institution\":\"University Ca' Foscari of Venice\",\"correspondingAuthor\":true,\"prefix\":\"\",\"firstName\":\"Marcella\",\"middleName\":\"\",\"lastName\":\"Lucchetta\",\"suffix\":\"\"}],\"badges\":[],\"createdAt\":\"2024-02-16 15:45:53\",\"currentVersionCode\":1,\"declarations\":\"\",\"doi\":\"10.21203/rs.3.rs-3961708/v1\",\"doiUrl\":\"https://doi.org/10.21203/rs.3.rs-3961708/v1\",\"draftVersion\":[],\"editorialEvents\":[],\"editorialNote\":\"\",\"failedWorkflow\":false,\"files\":[{\"id\":51337771,\"identity\":\"dba77824-017a-4eeb-84b5-f6d4d7028c78\",\"added_by\":\"auto\",\"created_at\":\"2024-02-19 20:15:15\",\"extension\":\"png\",\"order_by\":1,\"title\":\"Figure 1\",\"display\":\"\",\"copyAsset\":false,\"role\":\"figure\",\"size\":122568,\"visible\":true,\"origin\":\"\",\"legend\":\"\\u003cp\\u003ePer capita CO2 Emissions\\u003c/p\\u003e\",\"description\":\"\",\"filename\":\"1.png\",\"url\":\"https://assets-eu.researchsquare.com/files/rs-3961708/v1/16b6c86f7cba7a6add05b087.png\"},{\"id\":51337773,\"identity\":\"80af6aa4-25ae-4930-a722-e9688b74a3ca\",\"added_by\":\"auto\",\"created_at\":\"2024-02-19 20:15:16\",\"extension\":\"png\",\"order_by\":2,\"title\":\"Figure 2\",\"display\":\"\",\"copyAsset\":false,\"role\":\"figure\",\"size\":158547,\"visible\":true,\"origin\":\"\",\"legend\":\"\\u003cp\\u003eGDP behavior\\u003c/p\\u003e\",\"description\":\"\",\"filename\":\"2.png\",\"url\":\"https://assets-eu.researchsquare.com/files/rs-3961708/v1/4b35ef768c33eade38459118.png\"},{\"id\":51405421,\"identity\":\"72edbf3e-37ce-43e4-9905-de75bf423ae6\",\"added_by\":\"auto\",\"created_at\":\"2024-02-21 02:33:29\",\"extension\":\"pdf\",\"order_by\":0,\"title\":\"\",\"display\":\"\",\"copyAsset\":false,\"role\":\"manuscript-pdf\",\"size\":406182,\"visible\":true,\"origin\":\"\",\"legend\":\"\",\"description\":\"\",\"filename\":\"manuscript.pdf\",\"url\":\"https://assets-eu.researchsquare.com/files/rs-3961708/v1/28719c61-b5f8-4ecc-bf85-8f0fd7177c41.pdf\"},{\"id\":51338041,\"identity\":\"6819f426-7b66-41b9-bf97-be11ad2ac5c4\",\"added_by\":\"auto\",\"created_at\":\"2024-02-19 20:23:16\",\"extension\":\"docx\",\"order_by\":1,\"title\":\"\",\"display\":\"\",\"copyAsset\":false,\"role\":\"supplement\",\"size\":13596,\"visible\":true,\"origin\":\"\",\"legend\":\"\",\"description\":\"\",\"filename\":\"Table1.docx\",\"url\":\"https://assets-eu.researchsquare.com/files/rs-3961708/v1/6e541cb8d2f7ce2be052a28f.docx\"}],\"financialInterests\":\"There is \\u003cb\\u003eNO\\u003c/b\\u003e Competing Interest.\",\"formattedTitle\":\"Global green finance: deaths from air pollution and democracy index\",\"fulltext\":[{\"header\":\"I. Introduction\",\"content\":\"\\u003cp\\u003eThe issue of climate change and its consequences has become increasingly urgent, as pointed out by Mazzucato (2022), requiring enormous financial resources. It\\u0026apos;s not just about having enough financial resources. The current scientific paradigm demands a significant shift in our understanding, as evidenced by the concept of Anthropocene risk put forth by Keys et al. (2019). This concept emphasizes the complexity of the interconnections between various factors, necessitating a broader definition of systemic risk. It has been on the agenda since the recent COP28 held in Expo City Dubai in November 2023, following the well-known Paris Agreement of 2015 where EU leaders committed to achieving climate neutrality by 2050. However, these targets are still far from being met. The Ecological Transition requires a significant effort from both public and private sectors to achieve its important goals.\\u003c/p\\u003e\\n\\u003cp\\u003eThis paper focuses on Green Bonds and utilizes data collected by the International Monetary Fund (IMF) and the World Bank (WB). Arora and Gurung (2023) emphasize the need to consider human dimensions in economic matters, especially in global environmental governance, in their recent study. Carleton and Hsiang (2016) demonstrate the significant impact of weather on social and economic aspects. Our research shows, statistically, that the opposite is also true: lack of democracy and a low Gini Index affect climate mitigation and investment in Green Bonds.\\u003c/p\\u003e\\n\\u003cp\\u003eThis work presents several innovations. First, to our knowledge, it is the only one that combines environmental and social variables and includes the United Arab Emirates. Farzin Bond (2006) provides a reduced-form model of the relationship between environmental preferences, the degree of democratization of political institutions, and realized environmental policy. Their pioneering work analyzes other geographical areas, different from ours and does not include Arab countries. In any case, their results are important because they confirm the environmental philosophy that links democracy and green policy.\\u0026nbsp;\\u003c/p\\u003e\\n\\u003cp\\u003eThe consideration of how the Gulf Cooperation Council (GCC) brings together six Arab countries (including the United Arab Emirates) compared to other Macro Areas is revolutionary. Second, the study reveals significant correlations between social inequalities, democracy, and investments in green bonds. The findings are statistically robust and valuable for policymakers.\\u003c/p\\u003e\\n\\u003cp\\u003eShi and Moser (2021) have discovered significant differences in the actions of the US government, private sector, and society. These differences have led to investments in infrastructure that do not account for climate change and reforms in financial and other sectors that do not prioritize justice. In addition, the authors highlight the alarming increase in social vulnerability to the impacts of climate change. The transition is arduous and requires a global mindset shift.\\u003c/p\\u003e\\n\\u003cp\\u003ePalmer (2022) has shown that there is great despair surrounding the current level of investment in renewable energy projects and energy efficiency projects. According to the author, this investment is not enough to achieve the goals established by the international climate agreements. The author also points out that there is a serious issue with greenwashing.\\u003c/p\\u003e\\n\\u003cp\\u003eThis study examines how different regions invest in Green Bonds, what factors affect people\\u0026apos;s health (specifically, deaths caused by CO2), and how the level of democracy in a country affects its ability to achieve environmental goals. The analysis suggests that countries with powerful elites and low levels of democracy may be less attentive to environmental issues. For example, such elites may be wealthy due to their oil holdings and have influence over national leaders, while also having access to top-notch healthcare if needed. Although Naeem et al (2023) have made efforts in clean energy in the UAE, our work is the first to compare these areas with respect to green investments and social variables.\\u003c/p\\u003e\\n\\u003cp\\u003ePalmer (2022) has expressed great concern about the insufficient level of investment in renewable energy projects and energy efficiency projects. According to him, this is a major obstacle in achieving the goals set by the international climate agreements. The author also highlights the serious problem of greenwashing, which he believes deserves a separate paper to analyze credit allocation policies and study incentives for firms to act responsibly, particularly in specific macro-regions.\\u003c/p\\u003e\\n\\u003cp\\u003eThe rest of the paper is organized as follows. Section II introduces the motivation of the work and the Macro-Regions subject of analysis. Section III presents the methodology; the results are econometrically robust. Finally, section IV concludes.\\u003c/p\\u003e\"},{\"header\":\"II.\\tMOTIVATION\",\"content\":\"\\u003cp\\u003eAchieving Environmental, Social and Governance (ESG) objectives, not just the green ones, require coordination among different stakeholders. According to Alkemade and Hekkert (2010), uncoordinated initiatives are less likely to be effective. The urgency and importance of ESG objectives cannot be ignored anymore and require a long-term and coordinated effort. This effort needs to involve all the macro-areas globally that are connected by globalization and increasingly close interrelations, and that are moving towards development. This process must be harmonious and respectful of the social and environmental profile of the communities we live in. However, few studies[2] have compared and contrasted different cultures and countries, and this could result in poor outcomes during diplomatic negotiations (e.g., COP28). The GCC Exchanges Committee (which includes Saudi Arabia among Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE in view of their special relations, geographic proximity) was added quickly and with great push. Collaborating with other countries and regions is crucial. We must learn how to work together, breaking down any cultural or geographical barriers that may hinder our progress. To achieve our goals, we must act as a united front, even when faced with challenges. The first step towards this goal is to gain a deeper understanding of different cultures and the dynamic changes that are occurring in many countries.\\u003c/p\\u003e\\n\\u003cp\\u003eBased on the data from Bloomberg\\u0026apos;s Capital Markets League Tables, the UAE leads the regional green bond league tables with $10.7 billion in sales. During UAE\\u0026apos;s COP28 year, the country issued $7.95 billion in debut sustainable debt. Moreover, the UAE ministry of finance has plans to issue bonds and sukuk worth $1.29 billion in Q1 2024, which is an unprecedented push. These developments highlight the growth and development of these countries, as they produce significant issues and contribute to continuous development. They are also issuing large sums of money in green bonds, indicating their commitment to sustainability.\\u003c/p\\u003e\\n\\u003cp\\u003eAlthough Cop28 had some level of satisfaction, the UAE countries are now investing more in environmental issues. The econometric estimates of this study indicate that democracy has played a significant role in the attention given to these issues. It can be inferred that countries with small, wealthy social classes who have access to all kinds of health services have shown little concern for the rest of the population, who are often in disadvantaged conditions. However, international discussions have motivated these countries to focus on environmental issues.\\u003c/p\\u003e\"},{\"header\":\"III. METHODOLOGY\",\"content\":\"\\u003cp\\u003eThe statistical methodology employs Generalized Last Squares (GLS) unbalanced panel regressions with random effects. The data is collected from the International Monetary Fund and the World Bank. The GLS is typically used for estimating the unknown parameters in a model when there is a certain degree of correlation between the residuals in the regression model. The dataset is yearly and spans from 1985 or 1990 (the period from which we have data on green bonds) to 2022.\\u0026nbsp;\\u003c/p\\u003e\\n\\u003cp\\u003eThe results are highly robust and innovative. A greater number of green bonds implies a positive correlation with CO2 emissions, and the other variables are even more astonishing. The study analyzed Macro-Regions including the United Arab Emirates (UAE), United States (US), China, and Europe. This is the first study of its kind conducted in the UAE.\\u003c/p\\u003e\\n\\u003cp\\u003eThe panel data on Green Bonds for the US and Europe starts from 1985, while for China it is available from 2014 and from 1990 for the UAE. As definition of the IMF Green Bonds are any type of self-labelled fixed income instruments (by Country, Billion US Dollars) where the proceeds will be exclusively directed to finance or re-finance, in part or in full, new and/or existing green projects. It is regarded as a climate mitigation and adaptation tool.\\u003c/p\\u003e\\n\\u003cp\\u003eThe \\u003cem\\u003eDeaths air pollution\\u003c/em\\u003e is the Share of deaths attributed to air pollution. The \\u003cem\\u003eDemocracy index\\u003c/em\\u003e is based on the expert assessments and index by V-Dem. It captures to which extent political leaders are elected under comprehensive voting rights in free and fair elections, and freedoms of association and expression are guaranteed. It ranges from 0 to 1 (most democratic).\\u003c/p\\u003e\\n\\u003cp\\u003eTable 1 reproduces the statistical regression between the amount of green bonds, annual CO₂ emissions, deaths from CO₂ pollution and the democracy index.\\u003c/p\\u003e\\n\\u003cp\\u003eAll the result are significant (p-statistics equal to zero). It has been observed that the investment made in green bonds is slightly higher than the increase in emissions, which is measured at 1.17 tons of annual CO2. This suggests that there is some awareness among investors about the need to compensate for CO2 with suitable measures. However, it should be noted that this analysis does not take into account the issue of \\u0026quot;green washing\\u0026quot; or the actual effectiveness of the money spent.\\u0026nbsp;\\u003c/p\\u003e\\n\\u003cp\\u003eAccording to recent research, investing in green bonds can reduce deaths caused by air pollution. The study finds that there is a negative and significant coefficient between air pollution and deaths. By investing in green bonds, approximately 0.81% of people\\u0026apos;s lives can be saved annually.\\u0026nbsp;\\u003c/p\\u003e\\n\\u003cp\\u003eThe study also highlights that democracy plays a vital role in this aspect. The coefficient regarding democracy is very high and significant, which means that it provides a fundamental understanding of the relationship between democracy and air pollution. Specifically, the coefficient is -15.89. It is possible to explain the results by considering that countries that are very rich and produce oil tend to have a low democracy index. This is because the wealthy social classes in these countries are not very interested in spending money on environmental measures that are visible to the public. However, the same individuals who own the oil wells have access to the most advanced medical treatments in the event of illness and can travel to other countries. The data and regressions presented here confirm this intuitive effect.\\u003c/p\\u003e\"},{\"header\":\"IV. Conclusion and Policy Implications\",\"content\":\"\\u003cp\\u003eThis study combined environmental variables with social and health indicators. The result is that there is a clear connection between these dimensions. This is the first work that measures the cost of the lack of democracy on environmental investments. This work must be continued with a view to understanding all global risks as they are interconnected. In fact, our research agenda includes the analysis and measurement of Helbing\\u0026apos;s concept (2013). Together with all the WEF Global Reports which every year list pieces of a mosaic of risks that increasingly need to be recomposed and understood.\\u003c/p\\u003e\"},{\"header\":\"References\",\"content\":\"\\u003col\\u003e\\n\\u003cli\\u003eAlkemade, F., and Hekkert, M. P. (2010). Coordinate green growth. \\u003cem\\u003eNature\\u003c/em\\u003e, \\u003cem\\u003e468\\u003c/em\\u003e(7326).\\u003c/li\\u003e\\n\\u003cli\\u003eCarleton, T. A., and Hsiang, S. M. (2016). Social and economic impacts of climate. Science, 353(6304), aad9837.\\u003c/li\\u003e\\n\\u003cli\\u003eFarzin, Y. H., and Bond, C. A. (2006). Democracy and environmental quality. Journal of Development Economics, 81(1), 213-235.\\u003c/li\\u003e\\n\\u003cli\\u003eKeys, P. W., Galaz, V., Dyer, M., Matthews, N., Folke, C., Nystr\\u0026ouml;m, M., \\u0026amp; Cornell, S. E. (2019). Anthropocene risk. Nature Sustainability, 2(8), 667-673.\\u003c/li\\u003e\\n\\u003cli\\u003eHelbing, D. (2013). Globally networked risks and how to respond. Nature, 497(7447), 51-59.\\u003c/li\\u003e\\n\\u003cli\\u003eLucchetta, M. (2023). Climate bonds: Are they invested efficiently?. Journal of Environmental Management, 345, 118864.\\u003c/li\\u003e\\n\\u003cli\\u003eMazzucato, M. (2022). Financing the green new deal. Nature Sustainability, 5(2), 93-94.\\u003c/li\\u003e\\n\\u003cli\\u003eNaeem, M. A., Sadorsky, P. and Karim, S. (2023). Sailing across climate-friendly bonds and clean energy stocks: An asymmetric analysis with the Gulf Cooperation Council Stock markets. Energy Economics, 126, 106911.\\u003c/li\\u003e\\n\\u003cli\\u003ePalmer, L. (2022). Green energy financing. Nature Sustainability, 5(11), 910-911.\\u003c/li\\u003e\\n\\u003cli\\u003eShi, L., and Moser, S. (2021). Transformative climate adaptation in the United States: Trends and prospects. Science, 372(6549), eabc8054.\\u003c/li\\u003e\\n\\u003c/ol\\u003e\"},{\"header\":\"Tables\",\"content\":\"\\u003cp\\u003eTable 1 is available in the Supplementary Files section.\\u003c/p\\u003e\"},{\"header\":\"Footnotes\",\"content\":\"\\u003cp\\u003e[2] Naeem, Sadorsky and Karim, S. (2023).\\u003c/p\\u003e\"}],\"fulltextSource\":\"\",\"fullText\":\"\",\"funders\":[],\"hasAdminPriorityOnWorkflow\":false,\"hasManuscriptDocX\":true,\"hasOptedInToPreprint\":true,\"hasPassedJournalQc\":\"\",\"hasAnyPriority\":true,\"hideJournal\":true,\"highlight\":\"\",\"institution\":\"\",\"isAcceptedByJournal\":false,\"isAuthorSuppliedPdf\":false,\"isDeskRejected\":\"\",\"isHiddenFromSearch\":false,\"isInQc\":false,\"isInWorkflow\":false,\"isPdf\":false,\"isPdfUpToDate\":true,\"isWithdrawnOrRetracted\":false,\"journal\":{\"display\":true,\"email\":\"info@researchsquare.com\",\"identity\":\"researchsquare\",\"isNatureJournal\":false,\"hasQc\":true,\"allowDirectSubmit\":true,\"externalIdentity\":\"\",\"sideBox\":\"\",\"snPcode\":\"\",\"submissionUrl\":\"/submission\",\"title\":\"Research Square\",\"twitterHandle\":\"researchsquare\",\"acdcEnabled\":true,\"dfaEnabled\":false,\"editorialSystem\":\"\",\"reportingPortfolio\":\"\",\"inReviewEnabled\":false,\"inReviewRevisionsEnabled\":true},\"keywords\":\"\",\"lastPublishedDoi\":\"10.21203/rs.3.rs-3961708/v1\",\"lastPublishedDoiUrl\":\"https://doi.org/10.21203/rs.3.rs-3961708/v1\",\"license\":{\"name\":\"CC BY 4.0\",\"url\":\"https://creativecommons.org/licenses/by/4.0/\"},\"manuscriptAbstract\":\"The condition of our planet's environment is deteriorating, which is creating difficulties for all living beings on Earth. However, there is potential for many prosperous nations to take more action to fight against climate change, as suggested by Lucchetta in 2023. It's worth questioning why the implementation of climate policies is not being expedited. This study indicates that: a) the level of democracy in a country has a negative correlation with green investments, which implies that it plays a significant role (Farzin and Bond 2006); b) investing in green bonds can reduce deaths caused by CO2 emissions; c) the study provides statistics and comparisons between China, USA, Europe, and Arab countries.\\r\\n\\r\\nThe methology utilized unbalanced panel data from 1985 to the present for the United States and Europe and from 1990 onwards for the United Arab Emirates and China. The data was analyzed using the Generalized Least Square (GLS) method.\",\"manuscriptTitle\":\"Global green finance: deaths from air pollution and democracy index\",\"msid\":\"\",\"msnumber\":\"\",\"nonDraftVersions\":[{\"code\":1,\"date\":\"2024-02-19 20:15:09\",\"doi\":\"10.21203/rs.3.rs-3961708/v1\",\"editorialEvents\":[{\"type\":\"communityComments\",\"content\":0}],\"status\":\"published\",\"journal\":{\"display\":true,\"email\":\"info@researchsquare.com\",\"identity\":\"researchsquare\",\"isNatureJournal\":false,\"hasQc\":true,\"allowDirectSubmit\":true,\"externalIdentity\":\"\",\"sideBox\":\"\",\"snPcode\":\"\",\"submissionUrl\":\"/submission\",\"title\":\"Research Square\",\"twitterHandle\":\"researchsquare\",\"acdcEnabled\":true,\"dfaEnabled\":false,\"editorialSystem\":\"\",\"reportingPortfolio\":\"\",\"inReviewEnabled\":false,\"inReviewRevisionsEnabled\":true}}],\"origin\":\"\",\"ownerIdentity\":\"abe8e00a-8c91-4460-9c71-a7f0ef42b806\",\"owner\":[],\"postedDate\":\"February 19th, 2024\",\"published\":true,\"recentEditorialEvents\":[],\"rejectedJournal\":[],\"revision\":\"\",\"amendment\":\"\",\"status\":\"posted\",\"subjectAreas\":[{\"id\":28847186,\"name\":\"Social science/Environmental studies\"},{\"id\":28847187,\"name\":\"Social science/Finance\"}],\"tags\":[],\"updatedAt\":\"2025-06-08T17:23:23+00:00\",\"versionOfRecord\":[],\"versionCreatedAt\":\"2024-02-19 20:15:09\",\"video\":\"\",\"vorDoi\":\"\",\"vorDoiUrl\":\"\",\"workflowStages\":[]},\"version\":\"v1\",\"identity\":\"rs-3961708\",\"journalConfig\":\"researchsquare\"},\"__N_SSP\":true},\"page\":\"/article/[identity]/[[...version]]\",\"query\":{\"redirect\":\"/article/rs-3961708\",\"identity\":\"rs-3961708\",\"version\":[\"v1\"]},\"buildId\":\"qtupq5eGEP_6zYnWcrvyt\",\"isFallback\":false,\"isExperimentalCompile\":false,\"dynamicIds\":[84888],\"gssp\":true,\"scriptLoader\":[]}","source_license":"CC-BY-4.0","license_restricted":false}