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Speeches in the green: The political discourse of green central banking

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  • Feldkircher, Martin
  • Teliha, Viktoriya

Abstract

In this paper, we employ a keyword-assisted topic model to quantify the extent of climate-related communication of central banks. We find evidence for a significant increase in climate-related speeches by central banks, which address the topic mostly in parallel with issues related to financial stability, whereas monetary policy and price stability are less emphasized. Finally, we examine factors that can explain the extent of green communication by central banks. Controlling for macroeconomic and climate-related variables, we identify two external factors that can prompt central banks to increase green communication: First, peer pressure, as measured by membership in Network for Greening the Financial System (NGFS), increases green communication. Second, a high degree of governmental climate engagement, reflected by the scope of national climate policies, correlates positively with central banks’ green communication. Whether the central bank has an implicit or explicit sustainability mandate, however, does not explain the extent of green communication.

Suggested Citation

  • Feldkircher, Martin & Teliha, Viktoriya, 2024. "Speeches in the green: The political discourse of green central banking," Energy Economics, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:eneeco:v:135:y:2024:i:c:s0140988324003542
    DOI: 10.1016/j.eneco.2024.107646
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    More about this item

    Keywords

    Central banking; Climate change; keyword-assisted topic modeling;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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