The green advantage: Exploring the convenience of issuing green bonds
By Gianfranco Gianfrate, M. Peri. Journal of Cleaner Production, 2019
510 citations recorded by the source corpus.
Abstract The issue of how to finance the transition to a low-carbon economy in order to achieve the Paris Agreement's goal is crucial, especially considering the enormous amount of financing necessary to shift from rhetoric into action. Green bonds have recently emerged as one of the best candidates to help mobilizing financial resources towards clean and sustainable investments. Despite the growing relevance of green bonds, there is limited evidences on whether such bonds are actually convenient in comparison to other bonds with similar characteristics except for the “greeness”. By adopting a propensity score matching approach, we study 121 European green bonds issued between 2013 and 2017. We find that green bonds are more financially convenient than non-green ones. The advantage is larger for corporate issuers, and it persists in the secondary market. Our findings support the view that these bonds can potentially play a major role in greening the economy without penalizing financially the issuers.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/5d3d57c7f14ebe7b57b967f2b8910f168b1dd8f5
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In Economics and Econometrics
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- Farhad Taghizadeh‐Hesary
- Naoyuki Yoshino
- Han Phoumin
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- Isaac Akomea-Frimpong
- Deborah Ofosu
Citations in the corpus
- A review of studies on green finance of banks, research gaps and future directions (2021, background): “From the perspective of Gianfrate and Peri (2019), green infrastructure bonds with labels impact strongly on the subscription price.”
- Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World (2021, result): “This conclusion is shared by recent studies such as [8,10,11].”
- Green bonds as a tool against climate change? (2021, unknown): “With few exceptions, empirical findings point to the existence of a negative, albeit often small, yield differential in favour of green securities compared with similar regular bonds (Gianfrate & Peri, 2019), on primary and secondary markets alike.”