This study follows Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) to examine the existing literature on the connectedness of green bonds with other markets as an attempt to highlight the effectiveness of green bonds in risk management and the benefits associated with incorporating green bonds in investment portfolios. An extensive search of relevant research papers to the scope of the review led to the identification of 31 articles published by February 2022. Our analysis traces the evolution of studies on green bonds’ interactions with other markets, the methodologies and data frequencies used for cross-market relations analysis, and the role of green bonds in portfolio risk management (diversifier, hedge, and safe-haven) in normal and extreme market conditions. The study reports several interesting findings. First, green bonds can be a strategic safe-haven avenue for investors in stocks, dirty energy stocks, and the foreign exchange market in the US and China in extreme market downturns. Second, green bonds demonstrated hedging properties against spillovers from Bitcoin, forex, soft commodities, and CO₂ emission allowance. Third, the role of green bonds in the markets of natural gas, industrial metals, and crude oil is limited to a portfolio diversifier in different investment horizons. Fourth, green bonds had no diversification or hedge benefits for investors in conventional bonds. Fifth, the interrelationships between green bonds and most markets’ understudy were influenced by macroeconomic and global factors such as the COVID-19 pandemic, economic policy uncertainty, OVX, and VIX. Our review of the literature also facilitated identification of future research topics. The outcome of the review offers insightful information to investors in green bonds in risk management and assets allocation. Policy makers can benefit from this review in effective policy legislation for the advancement of the green bonds market and acceleration of a smooth transition to a net zero emission economy.

Climate change, environmental degradation and the novel covid-19 pandemic have affected financial markets worldwide forcing investors to search for safe haven assets for portfolio diversification and risk management. To this end, this study employs Wavelet coherence techniques and the spillover index methodologies to investigate comprehensively time-varying relationship between green sukuk and selected assets from the crypto-currency and commodity markets. The investigated period covers a period of 30 months pre and post covid-19 pandemic dating from October 15, 2019, to March 10, 2022. The projections of wavelet coherence analysis indicate a weak correlation between green sukuk and Bitcoin, Binance coin, gold and silver across different investment horizons whereas a moderate correlation was spotted between green sukuk and Ethereum and Palladium at low frequency on the outbreak of covid-19 pandemic. The static spillover analysis signified high connectedness between assets under study in the short term and affirmed potential long term diversification benefits of integrating green sukuk for risk adjusted returns of the portfolio. Dynamic rolling windows results demonstrated the impact of covid-19 pandemic on the intensity of assets’ connectedness particularly in the short run prompting temporal transmission of risks between asset classes at the onset of the covid 19 pandemic. The findings of the study are robust and offer useful insights to investors, speculators, academia, and policymakers.

This study attempts to provide a thorough overview of Islamic Finance and Economy (IFE) Scopus-indexed journal publications and probes its productivity and influence on the IFE discipline. The study sample includes 1036 articles from four Scopus-indexed journals, namely (1) International Journal of Islamic and Middle Eastern Finance and Management (IJIMEFM); (2) Journal of King Abdulaziz University (JKAU); (3) Journal of Islamic Accounting and Business Research (JIABR); and (4) Journal of Islamic Marketing (JIM). The study adopts quantitative and qualitative methods using Biblioshiny and VOSviewer software to analyze the aforementioned aspects of four IFE Scopus-indexed journal articles published between 2010 and 2019. Overall, the study findings confirm the increasing research outputs’ quantity and quality of four IFE Scopus-indexed journals. It also gives insightful information that may assist the respective four IFE Scopus-indexed journal editorial boards and academic community in formulating significant and impactful research agendas and strategies for the IFE discipline.