The Green Bonds Premium Puzzle: The Role of Issuer Characteristics and Third-Party Verification
| Autor: | Maria Bachelet, Stefano Manfredonia, Leonardo Becchetti |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
media_common.quotation_subject
lcsh:TJ807-830 Geography Planning and Development lcsh:Renewable energy sources Monetary economics Management Monitoring Policy and Law 0502 economics and business environmental sustainability 050207 economics lcsh:Environmental sciences media_common lcsh:GE1-350 liquidity 050208 finance Third party Renewable Energy Sustainability and the Environment lcsh:Environmental effects of industries and plants Bond 05 social sciences bond yields green bonds Market liquidity lcsh:TD194-195 Issuer Business Volatility (finance) Reputation |
| Zdroj: | Sustainability, Vol 11, Iss 4, p 1098 (2019) Sustainability Volume 11 Issue 4 |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su11041098 |
| Popis: | If we examine the characteristics of a sample of green bonds matched with their closest brown bond neighbors, we encounter a challenge. Green bonds have higher yields, lower variance, and are more liquid. The institutional/private issuer and the green third-party verification/non-verification breakdowns help explain this puzzle. Green bonds from institutional issuers have higher liquidity with respect to their brown bond correspondents and negative premia before correcting for their lower volatility. Green bonds from private issuers have much less favorable characteristics in terms of liquidity and volatility but have positive premia with respect to their brown correspondents, unless the private issuer commits to certify the &ldquo greenness&rdquo of the bond. An implication of our findings is that the issuer&rsquo s reputation or green third-party verifications are essential to reduce informational asymmetries, avoid suspicion of green (bond)-washing, and produce relatively more convenient financing conditions. |
| Databáze: | OpenAIRE |
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