Green Bond as an Innovative Financial Instrument in the Indian Financial Market: Insights From Systematic Literature Review Approach

Abhilash, Sandeep S. Shenoy, Dasharathraj K. Shetty, Lumen Shawn Lobo and Subrahmanya Kumar N.

SAGE Open, 2023, vol. 13, issue 2, 21582440231178783

Abstract: As India has set its ambitious target of reaching renewable energy by 2050, it has shown overwhelming interest in Environmental, Social, and Governance (ESG) focused financial products. However, studies on the Indian green bond market are sparse, besides its divergent role in terms of green bond issuance from an emerging market’s perspective. This study aims to fill this gap by employing a systematic review of the literature, emphasizing green bond market growth, the limiting factors, and its future development. This review examined papers published between 2010 and 2022. The review demonstrates that the lack of proper framework, high transaction costs, non-labeling of bonds, higher greenwashing, issuers’ poor creditworthiness, less government involvement, unattractive sovereign rate, unavailability of financial benefits, and lack of awareness have suppressed the rapid expansion of this market. The study based on its findings suggests effective policy measures with the expectation of the active involvement of multiple stakeholders.

Keywords: climate change; green bond; Environmental; Social; and Governance; financial market; India; Systematic Literature Review (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:2:p:21582440231178783

DOI: 10.1177/21582440231178783

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