The greenness of European Green Bonds

Paola Galfrascoli, Gianna Serafina Monti and Elisa Ossola

No 556, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: We propose a synthetic green indicator incorporating several dimensions contributing to the definition of greenness at the bond level. We include information on the presence of a green label attributed by a data provider based on the use of proceeds of the funds raised and certifications by external institutions. Variables regarding how the proceeds of green bonds are managed and whether a commitment exists to ongoing reporting on the funded projects are also added to account for the transparency of the bond issuance. To establish its role among the determinants of green bond yields, we perform a regression analysis consistent with the literature on measuring the greenium. The study comprehends a sample of European corporate green bonds between 2013 and 2024, and results highlight a significant negative premium, indicating that, ceteris paribus, “the more green†a bond is, the higher its greenium.

Keywords: corporate green bonds; green premium; sustainable finance; climate policy; multilevel models. (search for similar items in EconPapers)
JEL-codes: C21 G12 G28 Q5 (search for similar items in EconPapers)
Pages: 34
Date: 2025-07
New Economics Papers: this item is included in nep-eec and nep-fmk
References: Add references at CitEc
Citations:

Downloads: (external link)
http://repec.dems.unimib.it/repec/pdf/mibwpaper556.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:556

Access Statistics for this paper

More papers in Working Papers from University of Milano-Bicocca, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Matteo Pelagatti ().