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
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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
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Journal ArticleDOI
Is there an issuance premium for sri bonds?: Evidence from the periods before and after the covid-19 outbreak
Hak-Kyum Kim,Hee-Joon Ahn +1 more
TL;DR: In this article, the authors empirically examined whether there are any issuance premia for socially responsible investment (SRI) bonds, using the data from the South Korean bond market from May 2018 to December 2020.
Book ChapterDOI
Utilising Green Finance for Sustainability: Empirical Analysis of the Characteristics of Green Bond Markets
TL;DR: In this article, the authors investigated green bonds' characteristics, depending on the issuing region, with a special focus on Asia and the Pacific, and found that green bonds in Asia tend to show higher returns but higher risks and higher heterogeneity.
Journal ArticleDOI
Where's the green bond premium? Evidence from China
Quanzhou Li,Kai Zhang,Li Wang +2 more
TL;DR: In this article , the difference in yield spreads between labeled green bonds and non-labeled green bonds in the primary market in China was compared, and it was shown that green characteristics alone alone cannot reduce the costs of issuers.
Journal ArticleDOI
Whether corporate green bonds act as armour during crises? Evidence from a natural experiment
TL;DR: In this paper , the authors examined the impact of green bond issuance on firm value and stock market returns and found that green bond firms are valued more by investors compared to brown bonds firms.
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.
Journal ArticleDOI
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.
Journal ArticleDOI
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.