Modeling the impact of external influence on green behaviour spreading in multilayer financial networks

TL;DR

This paper introduces a model to analyze how external influences can promote green behaviors in multilayer financial networks, aiding policymakers in designing effective environmental strategies.

Contribution

It proposes a novel green behavior spreading model in bank-company networks to evaluate influence factors and optimize greening policies.

Findings

External influence duration and intensity significantly affect market greening levels.

Governing bodies can tailor policies based on market openness to enhance effectiveness.

The model helps identify optimal strategies for implementing green initiatives.

Abstract

Growing awareness of the impact of business activity on the environment increases the pressure on governing bodies to address this issue. One possibility is to encourage or force the market into green behaviours. However, it is often hard to predict how different actions affect the market. Thus, to help with that, in this paper, we have proposed the green behaviour spreading model in the bank-company multilayer network. This model allows assessing how various elements like the duration of external influence, targeted market segment, or intensity of action affect the outcome regarding market greening level. The model evaluation results indicate that governing bodies, depending on the market "openness" to green activities, can adjust the duration and intensity of the proposed action. The strength of the impact can be changed by the public or private authority with the use of obligatory or voluntary rules and the proportion of influenced banks. This research may be helpful in the process of creating the optimal setups and increasing the performance of greening policies implementation.