EconPapers    
Economics at your fingertips  
 

Green bonds as an innovative sovereign financial instrument

Marcin Wisniewski () and Jakub Zielinski ()
Additional contact information
Marcin Wisniewski: Poznan University of Economics and Business
Jakub Zielinski: Poznan University of Economics and Business

Ekonomia i Prawo, 2019, vol. 18, issue 1, 83-96

Abstract: Motivation: There is a growing awareness of the impact that climate change is having on the world economy and the standards of living. Green bonds (GBs) are relatively new and innovative instruments on the financial market where the capitals are also invested in projects that generate environmental or climate benefits. The newness of this financial instrument could be the main reason behind the scarcity of scientific publications on green bonds; thus, it remains an undeveloped research area. One of the problems is also classifying securities as GBs. Therefore, it is exceedingly important to distinguish labelled green bonds and unlabelled climate-aligned bonds. Aim: In the article, the authors will present the evolution of the green bonds market and attempt to assess the observed and potential effects of green bonds’ issuances, taking into account governments issues. Results: Green bonds are the next stage of market growth. In the article, the authors will present the benefits of green bonds and the positive impact that their issuance has on the issuer and on investors’ image as socially responsible entities. Therefore, strong investor demand can lead to oversubscription. Thus, green bonds could be one of the easiest ways to attract investors and potentially increase issuance size which can contribute to lower costs of financing green public tasks.

Keywords: green bond; financial market; green growth; climate change; public debt (search for similar items in EconPapers)
JEL-codes: G10 H63 O16 Q50 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.12775/EiP.2019.007 (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:cpn:umkeip:v:18:y:2019:i:1:p:83-96

Access Statistics for this article

Ekonomia i Prawo is currently edited by Barbara Polszakiewicz and Jerzy Boehlke

More articles in Ekonomia i Prawo from Uniwersytet Mikolaja Kopernika
Bibliographic data for series maintained by Miroslawa Buczynska ().

 
Page updated 2021-04-24
Handle: RePEc:cpn:umkeip:v:18:y:2019:i:1:p:83-96