Is the government always greener?

Caterina Di Tommaso, Salvatore Perdichizzi, Samuel Vigne and Andrea Zaghini

No 718, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: This research focuses on the cost of financing green projects on the primary bond market and tests for a potential price differential between green bonds issued by government entities and those issued by supranational and private sector issuers. Our findings indicate that government entities benefit from more favorable pricing conditions worldwide. This advantage is growing over time and particularly pronounced for sovereigns and municipal authorities. Our analysis also reveals that country-specific factors, such as strong political commitment to address climate change, low income level and high degree of indebtedness are significant predictors of the pricing spread across bonds.

Keywords: Green bonds; Sovereign debt; Yield spread; Greenium (search for similar items in EconPapers)
JEL-codes: C21 G15 G32 H63 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene, nep-env and nep-fmk
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:285366

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