Examining green finance resilience during the COVID-19 pandemic

Authors

  • David Staunton
  • Shaen Corbet Dublin City University (DCU)

Keywords:

Green Finance, ETFs, ESG, Pandemics, Behavioral finance

Abstract

This research investigates the market response of green and environmentally focused exchange-traded funds (ETFs) to COVID-19 variant announcements by the World Health Organisation (WHO). The results show that the direction of investor responses to COVID-19 variant announcements changed over the course of the pandemic. Initial WHO announcements triggered sharp negative market responses, reflecting heightened uncertainty and investor risk aversion. However, market resilience improved as subsequent variant announcements produced short-term positive reactions, suggesting improved investor confidence in green and environmentally-focused investment assets as a result of government support and policies designed to underpin their long-term sustainability. Results further illustrate such ETFs' potential to mitigate systemic risks and provide portfolio diversification.

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Published

30-01-2026

How to Cite

Staunton, D., & Corbet, S. (2026). Examining green finance resilience during the COVID-19 pandemic. Economics and Business Letters, 15(1), 30–43. Retrieved from https://reunido.uniovi.es/index.php/EBL/article/view/22605

Issue

Vol. 15 No. 1 (2026): March

Section

Articles

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