Is the government always greener?

Arbeitspapier

This research focuses on the cost of financing green projects on the primary bond market and tests for a potential price differential between green bonds issued by government entities and those issued by supranational and private sector issuers. Our findings indicate that government entities benefit from more favorable pricing conditions worldwide. This advantage is growing over time and particularly pronounced for sovereigns and municipal authorities. Our analysis also reveals that country-specific factors, such as strong political commitment to address climate change, low income level and high degree of indebtedness are significant predictors of the pricing spread across bonds.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFS Working Paper Series ; No. 718

Classification and Topics

• Classification: Wirtschaft ; International Financial Markets ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; National Debt; Debt Management; Sovereign Debt ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
• Subject: Green bonds ; Sovereign debt ; Yield spread ; Greenium

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Di Tommaso, Caterina ; Perdichizzi, Salvatore ; Vigne, Samuel ; Zaghini, Andrea
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (where): Frankfurt a. M.
• (when): 2024

Further information

• Handle: http://hdl.handle.net/10419/285366
• Last update: 10.03.2025, 11:45 AM CET