Green Bonds and Climate Change Mitigation

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Guest Editor
Department of Economics, Management and Statistics, Università degli Studi di Milano-Bicocca, Milan, Italy
Interests: green finance; green bond; econometrics

Special Issue Information

Dear Colleagues,

In the forthcoming decades, climate change will pose risks to society not only in the form of natural disasters, but also in the form of economic challenges to business models and the entire financial system. As acknowledged in the COP 21, the essential transition to a low-greenhouse-gas-emission economy requires substantial investment in long-term financial resources and the utilization of appropriate financial instruments for that purpose. Green bonds are distinctive sustainability-oriented fixed-income financial instruments that are intended to raise funds earmarked by the issuer for environmentally friendly projects consistent with a climate-resilient economy. To better understand the importance of green bonds in climate change mitigation, it is essential to explore the benefits and risks concerning firms, institutions, governments and markets.

We are therefore delighted to invite you to submit studies that enhance our understanding of green bonds in the context of climate change mitigation. Both theoretical and empirical papers are encouraged in areas that include, but are not limited to, the following topics:

(1) The importance of the green bonds instrument in mitigating climate change across levels such as firms, institutions, governments and markets.

(2) The relationship between conventional assets and the green bonds instrument.

(3) The impact of the green bonds on conventional and renewable energy to address climate change.

(4) The economic impact of policies promoting the green bonds market.

(5) Demystifying green bonds.

(6) Green bonds and climate financial instruments.

(7) Green bonds and responsible investment instrument (SRI).

We look forward to receiving your contributions,

Dr. Andrea Ugolini
Guest Editor

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Keywords

  • green bond
  • green finance
  • climate change
  • financial assets
  • financial markets
  • energy market

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Published Papers (1 paper)

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Research

18 pages, 457 KiB  
Article
Sovereign Green Bond Market: Drivers of Yields and Liquidity
by Kamila Tomczak
Int. J. Financial Stud. 2024, 12(2), 48; https://doi.org/10.3390/ijfs12020048 - 20 May 2024
Cited by 1 | Viewed by 2681
Abstract
The aim of this study is to analyse and assess the yields and liquidity of sovereign green bonds in selected countries and to compare the yields between sovereign green bonds and conventional bonds. Sovereign green bonds are issued by governments to finance environmental [...] Read more.
The aim of this study is to analyse and assess the yields and liquidity of sovereign green bonds in selected countries and to compare the yields between sovereign green bonds and conventional bonds. Sovereign green bonds are issued by governments to finance environmental and social projects and represent a relatively new and growing asset class. This study seeks to analyse the financial performance of sovereign green bonds by examining yields and liquidity metrics, such as bid–ask spreads. The findings of this research suggest that the yield to maturity (YTM) of sovereign green bonds is influenced by conventional bond return, while conventional sovereign bonds are affected by the financial market return. Furthermore, the results confirm that the liquidity of sovereign green bonds can be explained by bond maturity. Full article
(This article belongs to the Special Issue Green Bonds and Climate Change Mitigation)
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