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Drivers of green bond issuance and new evidence on the “greenium”
Jönköping University, Jönköping International Business School.
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.ORCID iD: 0000-0002-8999-8078
Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE). Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.ORCID iD: 0000-0001-5776-9396
2021 (English)In: Eurasian Economic Review, ISSN 1309-422X, Vol. 11, p. 1-24Article in journal (Refereed) Published
Sustainable development
Sustainable Development
Abstract [en]

This paper examines whether a premium for green bonds, called “greenium”, found in previous studies, exists in primary and secondary bond markets. Using a universe of about 2000 green and 180,000 non-green bonds from 650 international issuers, we apply both propensity score matching and coarsened exact matching to determine a sample of conventional bonds that is most similar to the sample of green bonds. We find that green bonds have larger issue sizes and lower rated issuers, on average, compared to conventional bonds. The estimates show that the yield for green bonds is, on average, 15–20 basis points lower than that of conventional bonds, both on primary and secondary markets, thus a “greenium” exists.

Place, publisher, year, edition, pages
Springer, 2021. Vol. 11, p. 1-24
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-51956DOI: 10.1007/s40822-020-00165-yISI: 000619747800001Scopus ID: 2-s2.0-85101208615Local ID: HOA;;1531109OAI: oai:DiVA.org:hj-51956DiVA, id: diva2:1531109
Available from: 2021-02-25 Created: 2021-02-25 Last updated: 2021-12-19Bibliographically approved

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Petreski, AleksandarStephan, Andreas

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