ReportDOI
Financing the Response to Climate Change: The Pricing and Ownership of U.S. Green Bonds
Malcolm Baker,Malcolm Baker,Daniel Bergstresser,George Serafeim,Jeffrey Wurgler,Jeffrey Wurgler +5 more
TLDR
In this article, the authors study green bonds, which are bonds whose proceeds are used for environmentally sensitive purposes, and find that green municipal bonds are issued at a premium to otherwise similar ordinary bonds.Abstract:Â
We study green bonds, which are bonds whose proceeds are used for environmentally sensitive purposes. After an overview of the U.S. corporate and municipal green bonds markets, we study pricing and ownership patterns using a simple framework that incorporates assets with nonpecuniary utility. As predicted, we find that green municipal bonds are issued at a premium to otherwise similar ordinary bonds. We also confirm that green bonds, particularly small or essentially riskless ones, are more closely held than ordinary bonds. These pricing and ownership effects are strongest for bonds that are externally certified as green.read more
Citations
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The Pricing of Green Bonds: External Reviews and the Shades of Green
TL;DR: In this paper, the authors investigate the asset pricing implications of the greenness of bonds and determine the green bond premium as the difference between the yields of matched conventional and green-labeled bonds.
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The Economics of the Greenium: How Much is the World Willing to Pay to Save the Earth?
Journal ArticleDOI
Paying for infrastructure in the post-recession era: Exploring the use of alternative funding and financing tools
TL;DR: In this article, the authors present a new fiscal reality where local governments face an aging stock of infrastructure and propose a new tax policy to deal with this issue, which is referred to as infrastructure preservation.
Journal ArticleDOI
Are green bonds and sustainable cryptocurrencies truly sustainable? Evidence from a wavelet coherence analysis
TL;DR: Zhang et al. as discussed by the authors explored the co-movement of daily returns among S&P green bonds (GB/GBs), the top five sustainable cryptocurrencies, Bitcoin, the Dow Jones Sustainability World Index (DJSWI), and Dow Jones sustainability Emerging Market Index (DJSEMI) to determine whether GBs, Bitcoin and sustainable cryptocurrencies are truly sustainable; in addition, they investigated hedging and diversification opportunities.
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Does green bond issuance have an impact on climate risk concerns?
TL;DR: In this paper , the effect of green bond issuance on firms' climate risk concerns from 2011 to 2020 was examined, and it was shown that firms pay more attention to climate risks after the issuance of green bonds.
References
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TL;DR: In this paper, the authors provide a critical review of the literature on socially responsible investments (SRI) and conclude that existing studies hint but do not unequivocally demonstrate that SRI investors are willing to accept suboptimal financial performance to pursue social or ethical objectives.
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The Effect of Green Investment on Corporate Behavior
TL;DR: In this paper, the authors explore the effect of exclusionary ethical investing on corporate behavior in a risk-averse, equilibrium setting and show that it leads to polluting firms being held by fewer investors since green investors eschew polluting stocks.
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The effect of pro-environmental preferences on bond prices: Evidence from green bonds
TL;DR: In this paper, the authors used green bonds as an instrument to identify the effect of non-pecuniary motives, specifically pro-environmental preferences, on bond market prices.
Journal ArticleDOI
The Wages of Social Responsibility
Meir Statman,Denys Glushkov +1 more
TL;DR: This article analyzed returns during 1992-2007 of stocks rated on social responsibility by KLD and found that this tilt gave socially responsible investors a return advantage relative to conventional investors, but the return advantage of tilts toward stocks of companies with high social responsibility scores is largely offset by the return disadvantage that comes from the exclusion of stocks of'shunned' companies.
Journal ArticleDOI
Disagreement, Tastes, and Asset Prices
TL;DR: The authors provide a simple framework for studying how disagreement and tastes for assets as consumption goods can affect asset prices, and propose a model to estimate the probability distributions of future payoffs on assets.