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:
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 Economics of the Greenium: How Much Is the World Willing to Pay to Save the Earth?
TL;DR: In this article, a theoretical and empirical analysis of the greenium, the price premium the investor pays for green bonds over conventional bonds, is provided, and it is shown that green bonds are subject to the risk of greenwashing to different extents.
Journal ArticleDOI
Primary Corporate Bond Markets and Social Responsibility
TL;DR: This article showed that good ES-performance is rewarded in primary bond markets by lower credit spreads, especially for low-rated bonds and for firms in manufacturing, agriculture, mining and construction.
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Climate Impact Investing
TL;DR: In this paper, the authors show that green investing spurs companies to mitigate their carbon emissions by raising the cost of capital of the most carbon-intensive companies, and that the impact of green investors primarily governs companies' long-term emissions.
Journal ArticleDOI
Corporate social behaviour: Is it good for efficiency in the Chinese banking industry?
Hirofumi Fukuyama,Yong Tan +1 more
TL;DR: An output-oriented data envelopment analysis framework to examine the efficiency of Chinese banks over the period 2007–2017 and test the relationship between efficiency and corporate social responsibility (CSR) shows that the gain from improving allocative output-efficiency by reallocating variable inputs is less than the gain attained by improving technical output- efficiency.
Journal ArticleDOI
Consumer response to corporate political statements: evidence from geolocation data
TL;DR: In this paper, the authors use smartphone-location data to measure foot traffic and find that customer store visits to Walmart decreased by 3.9% relative to local competitors after a corporate political statement on gun control.
References
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Journal ArticleDOI
Socially responsible investments: Institutional aspects, performance, and investor behavior
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.
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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.