Pricing of Green Labeling: A Comparison of Labeled and Unlabeled Green Bonds

By Suk Hyun, Donghyun Park, Shu Tian. Finance Research Letters, 2020

73 citations recorded by the source corpus.

Abstract This is the first study to empirically tests a price difference between labeled and unlabeled green bonds and to identify which factors contribute to any price difference although both bonds may eventually be used to fund environmentally beneficial projects. We study the effect of the green label, focusing on especially the yield of labeled and unlabeled green bonds after propensity score matching. We find that unlabeled green (clean energy) bonds are likely to have higher yields, despite unlabeled and labeled green bonds having the same characteristics.

Subfields: Economics and Econometrics, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c46cdb3db30f412b01ada4da8cbc02e34f53ce9e

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In Economics and Econometrics

1. Farhad Taghizadeh‐Hesary
2. Naoyuki Yoshino
3. Han Phoumin

In Finance

1. Farhad Taghizadeh‐Hesary
2. Naoyuki Yoshino
3. Han Phoumin

Citations in the corpus

• Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World (2021, background): “existence of the ‘green premium’, also called ‘greenium’, defined as ‘a discount that makes green bonds funded cheaper than other bonds from the same issuer’ [8,21].”