Which bonds trade at a green bond premium?

Abstract

(in)-credibly green: which bonds trade at a green bond premium? julia kapraun & christopher scheins summer school on sustainable finance ispra 1-3 july 2019 introduction green bonds by the end of 2018: issue volume green bonds $ 500 bn green bonds: finance or refinance environmentally sustainable projects sustainable projects: renewable energy, energy efficient buildings, clean transport, sustainable water management, ... issuer types: governments and local governments (france, belgium, poland, germany) supranationals (european investment bank, world bank) corporations from different sectors (tesla, apple, edf) j. kapraun, c. scheins (in)-credibly green introduction evidence concerning green bonds green bond issuance: positive effects on stock prices, liquidity, and institutional ownership (flammer (2018), glavan (2019), tang and zhang (2018)) results on green bond (gb) pricing mixed: lower yields for gbs (ehlers and packer (2017), hachenberg and schiereck (2018), zerbib (2019)) higher yields for gbs (karpf and mandel (2018), bachelet et al. (2019)) samples differ substantially w.r.t. currency, number of bonds, primary/secondary market,... j. kapraun, c. scheins (in)-credibly green introduction this paper: new evidence on green bond premium is there a difference in yields between green and conventional bonds? definition: “gb premium”⇒ yield(gb) < yield(cb) is there variation across markets (primary vs secondary), currencies, issuers (corporates vs governments), and time? 3 “green …

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