Does transparency matter? Evidence from panel analysis of the EU government green bonds

Irena Jankovic, Vladimir Vasic and Vlado Kovacevic

Energy Economics, 2022, vol. 114, issue C

Abstract: The aim of this research is to amend traditional theories on bond pricing with additional determinants specific to green bonds. We introduce a new term, ‘green bond transparency’, and apply panel data analysis to EU government green bonds. Bonds that aim to finance a specific project are considered transparent, while they are classified as non-transparent if the proceeds are used to finance a range of projects or their use is to be determined later. We empirically confirm the significant effect of transparency on green bond yields. The practical implication of the findings is the creation of a foundation for issuing green bonds under more favorable financing conditions.

Keywords: Green bonds; Yield determinants; Transparency (search for similar items in EconPapers)
JEL-codes: C23 G12 Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:114:y:2022:i:c:s0140988322004546

DOI: 10.1016/j.eneco.2022.106325

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