Estimation of green bond premiums on the Chinese secondary market
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985556%3A_____%2F22%3A00567676" target="_blank" >RIV/67985556:_____/22:00567676 - isvavai.cz</a>
Result on the web
<a href="https://polek.vse.cz/artkey/pol-202206-0003_estimation-of-green-bond-premiums-on-the-chinese-secondary-market.php" target="_blank" >https://polek.vse.cz/artkey/pol-202206-0003_estimation-of-green-bond-premiums-on-the-chinese-secondary-market.php</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.18267/j.polek.1363" target="_blank" >10.18267/j.polek.1363</a>
Alternative languages
Result language
angličtina
Original language name
Estimation of green bond premiums on the Chinese secondary market
Original language description
Green bonds have gained prominence in China’s capital market as tools that help to fuel the transition to a climate-resilient economy. Although the issuance volume in the Chinese green bond market has been growing rapidly in recent years, the impact of the green label on bond pricing has not been adequately studied. Therefore, this paper investigates whether this newly developed financial instrument offers investors in China an attractive yield compared to other equivalent conventional bonds. By matching green bonds with their conventional counterparts and subsequently applying a fixed-effects estimation, our empirical results reveal a significant green bond yield premium of 1.8 basis points (bps) on average in the Chinese secondary market. As compared to Climate Bond Initiative (CBI) certified green bonds, we find that investors are more willing to accept lower yields (pay higher prices) to include People’s Bank of China (PBOC) certified green bonds into their portfolio management. Thus, we argue that Chinese green investors prefer PBOC certified green bond over CBI certified green bonds in the Chinese market. Driven by pro-environmental preference, investors are also found to be willing to pay a higher price for green bonds issued by environmental, social and governance (ESG) performance-rated issuers. Our results point to some practical implications for investors and policymakers.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
POLITICKA EKONOMIE
ISSN
2336-8225
e-ISSN
2336-8225
Volume of the periodical
70
Issue of the periodical within the volume
6
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
26
Pages from-to
684-710
UT code for WoS article
000926486100003
EID of the result in the Scopus database
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