Evaluating the impact of green bonds on renewable energy investment to promote sustainable development in China

The rapid development of renewable energy (RE) has become a crucial strategy to mitigate climate change and promote sustainable development. However, financing RE projects is often challenging due to high upfront costs, complex regulatory frameworks, and lack of access to capital. Green bonds have emerged as a promising tool for financing RE projects and promoting sustainable development. This study evaluates the impact of green bonds on RE investment in China using a fuzzy analytical hierarchy process (FAHP) and a fuzzy weighted aggregates sum product assessment (WASPAS) method. The study identifies six factors, 18 sub-factors, and six investment strategies through extensive literature works. The FAHP method is used to evaluate various factors and sub-factors, while the fuzzy weighted aggregates sum product assessment (FWASPAS) method is employed to identify the key strategies for green bonds implementation in RE projects. The FAHP analysis finds that the financial impact of green bonds is the most significant factor with financial feasibility and cost of capital being the most important sub-factors in this category. The environmental, regulatory, and market are the most important sub-factors. The FWASPAS method indicates that green bonds can have significant impact on lowering the cost of capital, improving investor confidence, and supporting project certification of RE projects.