Template-Type: ReDIF-Paper 1.0

Author-Name: Balazs Istvan Horvath
Author-X-Name-First: Balazs Istvan
Author-X-Name-Last: Horvath
Author-Email: horvathba@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Author-Name: Pal Peter Kolozsi
Author-X-Name-First: Pal Peter
Author-X-Name-Last: Kolozsi
Author-Email: kolozsip@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Author-Name: Marton Varga
Author-X-Name-First: Marton
Author-X-Name-Last: Varga
Author-Email: vargam@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Author-Name: Eszter Baranyai
Author-X-Name-First: Eszter
Author-X-Name-Last: Baranyai
Author-Email: baranyaie@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Author-Name: Kristof Lehmann
Author-X-Name-First: Kristof
Author-X-Name-Last: Lehmann
Author-Email: lehmannk@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Author-Name: Adam Banai
Author-X-Name-First: Adam
Author-X-Name-Last: Banai
Author-Email: banaia@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Author-Name: Gabor Neszvada
Author-X-Name-First: Gabor
Author-X-Name-Last: Neszvada
Author-Email: neszvadag@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Title: OP 153. Balazs Istvan Horvath-Pal Peter Kolozsi-Marton Varga-Eszter Baranyai-Kristof Lehmann-Adam Banai-Gabor Neszveda: Green Central Bank Measures and Public Trust – Empirical Evidence from Survey Data

Abstract: Central banks can play a key role in the change in finance needed for the green transition, but green central bank measures
may also have an impact on the general public's trust in the institution. Trust, in turn, is crucial for central banks to
successfully conduct monetary policy. The objective of our study is to examine how this trust may change in response to
green central bank measures in Hungary, using an independently conducted survey of 1,000 adults. Our results indicate
that there is potential for some increase and a limited risk of a decrease in trust as a result of green measures. Although
most respondents indicated that their trust in the central bank would not change if it took pro-environmental measures,
over one third of respondents thought their trust would increase (37 per cent), while the share of those indicating a
decline in trust was low (6 per cent). The majority supports the active involvement of the Central Bank of Hungary in
the fight against climate change, but only as long as this does not pose risks to the inflation target and the stability of
the banking system. We also find that Hungarians tend to worry about climate change and, accordingly, they consider
the central bank's role in environmental sustainability important, but have little knowledge about the tasks of central
banks.

Length: 34 pages

Creation-Date: 2025

File-URL: https://www.mnb.hu/en/publications/studies-publications-statistics/occasional-papers/op-153-balazs-istvan-horvath-pal-peter-kolozsi-marton-varga-eszter-baranyai-kristof-lehmann-adam-banai-gabor-neszveda-green-central-bank-measures-and-public-trust-empirical-evidence-from-survey-data

File-Format: Application/pdf
Number: 2025/153
Classification-JEL:  E58, E61, Q54
Keywords: green transition, public confidence, central bank, monetary policy
Handle: RePEc:mnb:opaper:2025/153