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Author: Jochen M. Schmittmann
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
We analyze the corporate green bond market under a rational framework without an innate green preference, using a simple adverse selection model. Firms can use green bonds to signal their green credentials to investors. Transition risk stems from uncertainty over the introduction of carbon pricing. We show that green bonds have a price premium over conventional bonds when there are information asymmetry, transition risk, and it is costly to engage in greenwashing, that is, false or exaggerated claims of being green. The extent of greenwashing in the market is a function of the green bond premium. A swift and gradual implementation of carbon pricing generates a small green bond premium and a low level of greenwashing, while delayed and large carbon pricing has an ambiguous effect on both. The model provides a rich set of policy implications, notably the need for swift action on carbon pricing and strong information disclosures and regulations to ensure the integrity of green bonds.
Author: Jochen M. Schmittmann
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
We analyze the corporate green bond market under a rational framework without an innate green preference, using a simple adverse selection model. Firms can use green bonds to signal their green credentials to investors. Transition risk stems from uncertainty over the introduction of carbon pricing. We show that green bonds have a price premium over conventional bonds when there are information asymmetry, transition risk, and it is costly to engage in greenwashing, that is, false or exaggerated claims of being green. The extent of greenwashing in the market is a function of the green bond premium. A swift and gradual implementation of carbon pricing generates a small green bond premium and a low level of greenwashing, while delayed and large carbon pricing has an ambiguous effect on both. The model provides a rich set of policy implications, notably the need for swift action on carbon pricing and strong information disclosures and regulations to ensure the integrity of green bonds.
Author: Tilman Baunach
Publisher: GRIN Verlag
ISBN: 3346286002
Category : Business & Economics
Languages : en
Pages : 57
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Book Description
Bachelor Thesis from the year 2020 in the subject Economics - Finance, grade: 1,7, Wiesbaden University of Applied Sciences (Wiesbaden Business School), course: Finance, language: English, abstract: This thesis aims to analyse the Green Bond market and its protagonists in order to assess its long-term potential in financing the necessary changes on earth. To ensure that readers without profound financial literacy can comprehend the paper, the second chapter gives an overview of the debt capital market instrument "bonds" and its main aspects. The tools used to assess the protagonists' international competitiveness as part of the international analysis are introduced here as well. The third part deals with "Green Bonds" in particular. It consists of important general information and a widespread market overview. Section four comprises the international market and competitiveness analyses of the main market players: the EU, United States and China (with Hong Kong SAR). A future prospect for the Green Bond market, based on the outcomes of a brief "expert interview" the author distributed among professionals working in the financial world, is given in chapter five. To round off the thesis, the sixth and final chapter forms the conclusion that draws a bow back to the introduction.
Author: Asian Development Bank
Publisher: Asian Development Bank
ISBN: 9292692852
Category : Business & Economics
Languages : en
Pages : 89
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Book Description
This guidance note aims to help bond issuers and their advisors to understand the process and key considerations for a successful green bond issuance. Demand for green bonds and other sustainable finance products is increasing rapidly, and issuers are seeing an opportunity to be part of the green bond market. This publication covers all the steps required to follow best practices in labeling bonds as green. It includes examples, links to further details, and key resources for green bond issuers and their deal teams.
Author: Singh, Kuldeep
Publisher: IGI Global
ISBN:
Category : Business & Economics
Languages : en
Pages : 401
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Book Description
The intersection of technology and sustainability is with a particular focus on the concept of the circular economy. Efficient resource use and waste reduction are paramount concerns in today's world. Utilizing Technology for Sustainable Resource Management Solutions provides a comprehensive overview of how technology can be harnessed to achieve sustainable resource management within the framework of a circular economy. The book delves into various aspects of the circular economy. It explores the principles that underpin it, presents real-world case studies that exemplify its successful implementation, and discusses the role of cutting-edge technology, which is instrumental in driving transformative change. The book advances current research and examines the intricate link between technology and sustainability, centered around the circular economy. It propels readers into the heart of environmental sustainability, presenting a compelling argument for adopting circular economy principles to mitigate resource depletion and environmental degradation. Through insightful case studies and theoretical foundations, readers are empowered to drive environmentally responsible practices in their personal and professional spheres. This book helps business leaders to integrate circular economy principles, reduce waste, and drive innovation, fostering long-term viability and competitiveness. Policymakers find a valuable resource for evidence-based insights into technology's role in sustainable resource management, aiding in developing regulations that balance economic growth with environmental stewardship. In academic and educational circles, the book has become an essential tool.
Author: Mr. Sakai Ando
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 15
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Book Description
This paper assembles a comprehensive sovereign green bond database and estimates the sovereign greenium. The development of green bond markets has been one of the most important financial breakthroughs in the domain of sustainable finance during the last 15 years. A central benefit associated with green bonds has been that they exhibit a positive green premium (greenium), i.e., a lower yield relative to a similar conventional bond. Yet, issuances at the sovereign level have been relatively recent and not well documented in the literature. We find that green bonds are issued at a relatively small premium (4 basis points on average) in Advanced Economies. Yet, importantly, the greenium is growing over time and is considerably larger (11 basis points on average) for Emerging Market Economies.
Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 62
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Book Description
Switzerland: Selected Issues
Author: Othmar M. Lehner
Publisher: Taylor & Francis
ISBN: 100096616X
Category : Business & Economics
Languages : en
Pages : 615
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Book Description
Green finance is heralded in theory and practice as the new panacea – the ideal way to support the green transition of businesses into more sustainable, environmentally responsible forms, by means of incentivized financial investments. This handbook brings together a variety of expert scholars with industry specialists to offer the most authoritative overview of green finance to date, presenting the current situation in the field. It focuses on green finance in a comprehensive way, discussing its characteristics, underlying principles, and mechanisms. The book carefully illuminates the issues surrounding green finance and delineates its boundaries, mapping out and displaying the disparate voices, traditions, and professional communities engaged in green and sustainable finance activities. Specifically, it examines the "environmental" in the environmental, social, and governance (ESG) measurements, while also discussing the interplay between each measurement. It develops a range of analytic approaches to the subject, both appreciative and critical, and synthesizes new theoretical constructs that make better sense of hybrid financial relationships. Furthermore, the handbook illustrates existing best practices and theories, and critically examines the gaps to derive the necessary future research questions. It highlights the essential issues and debates and provides a robust research agenda. As such, it helps to create an effective market for the various green financing instruments through clarification and standardization. This handbook will be the standard reference work for a broad audience, encompassing scholars, researchers, and students but also interested professionals, regulators, and policymakers wishing to orient themselves in a rapidly developing and increasingly topical field.
Author: Pedro Matos
Publisher: CFA Institute Research Foundation
ISBN: 1944960988
Category : Business & Economics
Languages : en
Pages : 80
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Book Description
This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.
Author: Mr.Giovanni Dell'Ariccia
Publisher: International Monetary Fund
ISBN: 145195154X
Category : Business & Economics
Languages : en
Pages : 32
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Book Description
The paper analyzes the effects of informational asymmetries on the market structure of the banking industry in a multi-period model of spatial competition. All lenders face uncertainty with regard to borrowers’ creditworthiness, but, in the process of lending, incumbent banks gather proprietary information about their clients, acquiring an advantage over potential entrants. These informational asymmetries are an important determinant of the industry structure and may represent a barrier to entry for new banks. The paper shows that, in contrast with traditional models of horizontal differentiation, the steady-state equilibrium is characterized by a finite number of banks even in the absence of fixed costs.
Author: Peng Dou
Publisher: Springer Nature
ISBN: 9464634413
Category : Electronic books
Languages : en
Pages : 957
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Book Description
