Financial and energy markets - a sustainable approach. Perspective of European countries belonging to the OECD

Abstract

Purpose: This paper sets out to explore the relationships between a sustainable energy market and a sustainable financial market and energy market. The specific research objectives were: to explore whether sustainable finance only correlates with a sustainable energy market, or perhaps this relationship also exists with the traditional energy market, to identify the groups of countries for which there are correlations between the study categories. Design/Methodology/Approach: The empirical analysis is based on data from 2008, 2014, and 2018, as related to the energy market, sustainable energy, and sustainable finance for 28 European countries belonging to the OECD. A taxonomic development measure based on the reference method in the positional approach using the Weber median was used. Findings: The results confirmed the existence of a positive correlation between the energy market and the financial market in a sustainable approach. No such relationship was demonstrated for all three categories at the same time, i.e. energy market, sustainable energy market and sustainable finance. Practical Implications: This research is important for the policies of financial institutions and financial markets from the point of view of developing products and services for sustainable financing, so as to change the structure and improve the effects related to social responsibility (ESG risk reduction). Originality/value: This study examines whether relationships exist between a sustainable energy market and sustainable finance and the energy market in the traditional approach.