Non-identical twins: Evidence on greenium in the German treasury bond market

Paola De Vincentiis and Danilo Abis

Research in International Business and Finance, 2025, vol. 79, issue C

Abstract: The rapidly growing market for green bonds is capturing much interest from researchers. A relevant question is whether green financing is characterized by higher or lower yields compared to conventional financing. We focus our analysis on the German Treasury bonds market, which – thanks to the so-called ‘twin model’ – offers a perfect environment to observe the phenomenon. We confirm the presence of a statistically significant greenium, even though it is too small to make any relevant difference from a financial point of view. The magnitude of the greenium is associated with the global investor’s attention to environmental and climate topics.

Keywords: Green bonds; Greenium; Sovereign sustainable funding (search for similar items in EconPapers)
JEL-codes: G14 H63 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:79:y:2025:i:c:s0275531925003137

DOI: 10.1016/j.ribaf.2025.103057

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