Does green bond issuance have an impact on climate risk concerns?

Chih-Wei Wang, Yu-Ching Wu, Hsin-Yi Hsieh, Po-Hsiang Huang and Meng-Chieh Lin

Energy Economics, 2022, vol. 111, issue C

Abstract: This paper examines the effect of green bond issuance on firms' climate risk concerns from 2011 to 2020. First, we propose four ratios of climate risk concerns, which are transition risks, acute physical risks, chronic physical risks, and climate-related opportunities by using text mining techniques. Second, we find that the climate risk concerns increase for most firms after the issuance of green bonds. Finally, to eliminate the endogeneity, we adopt propensity score matching (PSM) and difference-in-difference (DID) analysis to indicate that after the issuance of green bonds, firms pay more attention to climate risks. Our results provide insights and implications for policy makers and regulators.

Keywords: Transition risks; Acute physical risks; Chronic physical risks; Climate-related opportunities; Green bond issuance (search for similar items in EconPapers)
JEL-codes: G33 Q54 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:111:y:2022:i:c:s0140988322002328

DOI: 10.1016/j.eneco.2022.106066

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