Green Bonds Prove Cheaper and Boost Stock Market, Fighting Climate Change
The article explores how green bonds can help fight climate change and benefit companies. The researchers found that green bonds are priced lower than regular bonds, with a 1.93–2.24% premium. They studied 200 corporate green bonds issued after the Paris Agreement and discovered that the stock market reacts positively to green bond announcements. However, the environmental impact of green bonds on reducing carbon emissions was found to be insignificant. Overall, green bonds seem to be economically beneficial, but they still have a ways to go in achieving their environmental goals.