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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Journal ArticleDOI
Voluntary Disclosure and Adverse Selection: Bayesian Game-Theoretical Inferences for Green Bond Labelling Regimes
TL;DR: The impact finance market has sought to 'internalise externalities and adjust risk perceptions' (G20 Green Finance Study Group, 2016), demonstrating the private sector's capability in resolving the climate free-rider problem through the 'greening' of economic activities, partially bypassing corrective government intervention as discussed by the authors.
Journal ArticleDOI
Ranking and prioritization of responsible investment projects in the sphere of natural protection aimed to achieve sdg13
TL;DR: In this article , the authors developed a methodology for ranking and prioritizing projects of responsible investment in the field of environmental protection to promote progress in sustainable development goals 13 and its approval on the example of the projects of the "Environmental safety" direction under the Post-war Recovery Plan of Ukraine.
Journal ArticleDOI
Green Bonds for Mobilising Environmental Finance
TL;DR: In this paper , the authors examined the potential of green bonds in unleashing sustainability focusing on the UN SDG 12, titled "responsible consumption and production", and concluded that green bonds have huge potential in financing green infrastructure that enables responsible production and consumption.
Journal ArticleDOI
Investigating the moderating effect of operational risk on the relationship between social responsibility and cost of equity capital in companies listed on Tehran stock exchange
TL;DR: In this paper , the authors investigated the relationship between social responsibility and cost of equity capiral and the moderating effect of operational risk on the mentioned relationship and found that the operational risk has a significant and inverse effect on the relationship of social responsibility with the cost of capital.
Book ChapterDOI
The Role of Bank Regulators in the Promotion of Green and Climate Finance
TL;DR: The authors describes how central banks are increasingly seen as key players in advancing regulations supporting a low-carbon or net-zero agenda and illustrates future policy directions and the new policy tools that central banks and financial regulators need to consider as climate change and its economic consequences are anticipated to generate new risks for financial markets.
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.