Green Bonds: Effectiveness and Implications for Public Policy / Caroline Flammer.

Format:

Book

Author/Creator:

Flammer, Caroline.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25950.

NBER working paper series no. w25950

Language:

English

Subjects (All):

Greenhouse gas mitigation--Economic aspects--Canada.

Greenhouse gas mitigation.

Environmental protection--Economic aspects--Canada.

Environmental protection.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

This paper studies green bonds, a relatively new instrument in sustainable finance. I first describe the market for green bonds and characterize the "green bond boom" witnessed in recent years. Second, using firm-level data on green bonds issued by public companies, I examine companies' financial and environmental performance following the issuance of green bonds. I find that the stock market responds positively to the announcement of green bond issues. Moreover, I document a significant increase in environmental performance, suggesting that green bonds are effective in improving companies' environmental footprint. These findings are only significant for green bonds that are certified by independent third parties, suggesting that certification is an important governance mechanism in the green bond market. I conclude by discussing potential implications for public policy.

Notes:

Print version record

June 2019.

Includes bibliographic references.

OCLC:

818084189

Publisher Number:

234429 CaOOCEL (Public Documents)