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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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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Book ChapterDOI
Towards a Greenification
TL;DR: In this paper , the authors provided an empirical analysis on the existence of a green bond premium on the secondary market, defined as the yield differential between a green and a comparable brown bond, while controlling for liquidity.
Journal ArticleDOI
Is There a Greenium in Korean Bond Markets?: An Empirical Analysis of Bond Secondary-Market Trading Data*
Haksoon Kim,Heejae Ahn +1 more
TL;DR: In this paper , the authors examined the secondary-market bond trading data from May 2018 to December 2021 to see if there exists a green premium or "greenium" in Korean bond markets.
Journal ArticleDOI
Rethinking greenium: a quadratic function of yield spread
TL;DR: This paper showed that the greenium increases for higher levels of non-green bond yield spread and this occurs at an increasing rate, and that at least partially this nonlinearity accounts for the effects of credit spread and coupon rate differences.
Journal ArticleDOI
Green light for green credit? Evidence from its impact on bank efficiency
Jorge E. Galán,Yongxian Tan +1 more
TL;DR: In this article , the impact of green credit on bank efficiency has been assessed for the first time in the literature, and it was shown that green credit has a negative impact on the efficiency of banks.
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.