The price of going green: the role of greenness in green bond markets

By Suk Hyun, Donghyun Park, Shu Tian. Accounting and Finance, 2019

153 citations recorded by the source corpus.

In this paper, we empirically investigate how greenness information is priced in the green bond market. Our comparison of liquidity‐adjusted yield premiums of green bonds versus synthetic conventional bonds indicates that, on average, there is no robust and significant yield premium or discount on green bonds. However, green bonds certified by an external reviewer enjoy a discount of about 6 bps. Furthermore, green bonds that obtain a Climate Bonds Initiative certificate show a discount of around 15 bps. The findings suggest that a universally accepted greenness measure can benefit the development of the green bond market.

Subfields: Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a59833104281517207e53f82922c74365f54b796