Pricing of Green Labeling: A Comparison of Labeled and Unlabeled Green Bonds

Suk Hyun, Donghyun Park and Shu Tian

Finance Research Letters, 2021, vol. 41, issue C

Abstract: This is the first study to empirically tests a price difference between labeled and unlabeled green bonds and to identify which factors contribute to any price difference although both bonds may eventually be used to fund environmentally beneficial projects. We study the effect of the green label, focusing on especially the yield of labeled and unlabeled green bonds after propensity score matching. We find that unlabeled green bonds are likely to have higher yields, despite unlabeled and labeled green bonds having the same characteristics.

Keywords: Green bond; green label; green premium; bond yield (search for similar items in EconPapers)
JEL-codes: G12 G14 G19 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:41:y:2021:i:c:s1544612320316305

DOI: 10.1016/j.frl.2020.101816

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