Do green bonds have environmental benefits?

This research explores the asymmetric green finance-environmental quality nexus in the top 10 countries that support green finance. Green bonds and ecological footprint are used as proxies for green finance and environmental quality, respectively. Past studies employed panel data approaches, yielding typical results regarding the relationship between green finance and the environment, even though many countries did not establish such a correlation on their own. This study, on the contrary, adopts a unique Quantile-on-Quantile technique, which allows researchers to independently investigate time-series dependence in each economy by providing global but country-specific information on the link between the variables. According to assessments, green financing improves environmental quality in 8 out of 10 selected economies at particular quantiles of data distribution. However, two countries yielded mixed results. Moreover, the results reveal that the asymmetry between our variables varies by nation, stressing the importance of authorities' paying close attention while adopting green finance and ecological sustainability policies. This study could help identify priorities and gaps that must be addressed to achieve the sustainable development goals (SDGs). •We investigated the asymmetric association between green finance and green technology innovation.•We employed the Quantile-on-Quantile methodology to assess the relationship.•Estimates show that green finance enhances green technology innovation in most European countries.•The findings expose that the degree of asymmetry among various quantiles of our variables varies by country,•Policymakers should pay particular attention while employing green finance and green innovation policies.