Green bonds in the Russian market: Assessing environmental influence on returns

Yulia V. Vymyatnina () and Aleksandr A. Chernykh ()
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Yulia V. Vymyatnina: European University at Saint-Petersburg, Saint Petersburg, Russia
Aleksandr A. Chernykh: European University at Saint-Petersburg, Saint Petersburg, Russia

Russian Journal of Economics, 2024, vol. 10, issue 3, 211-228

Abstract: In this paper, we study whether the environmental characteristics of assets influence their returns in the case of the Russian bond market. Our main goal for this study was to research this issue for Russia using the same methodology as in studies for developed markets to allow for comparison of results. We use the twin bond methodology and consider expected returns. Our main hypothesis is that brown (i.e., non-green) assets should have a higher yield compared to green ones. Indeed, we find, predictably, that green bonds have a lower yield to maturity. This result is in line with previous results for other markets and suggests that green financing might be cheaper for companies.

Keywords: green; bonds; ESG; sustainable; investing; Greenium. (search for similar items in EconPapers)
JEL-codes: G10 G12 O5 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:arh:jrujec:v:10:y:2024:i:3:p:211-228

DOI: 10.32609/j.ruje.10.121967

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