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Does transparency matter? Evidence from panel analysis of the EU government green bonds

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  • Jankovic, Irena
  • Vasic, Vladimir
  • Kovacevic, Vlado

Abstract

The aim of this research is to amend traditional theories on bond pricing with additional determinants specific to green bonds. We introduce a new term, ‘green bond transparency’, and apply panel data analysis to EU government green bonds. Bonds that aim to finance a specific project are considered transparent, while they are classified as non-transparent if the proceeds are used to finance a range of projects or their use is to be determined later. We empirically confirm the significant effect of transparency on green bond yields. The practical implication of the findings is the creation of a foundation for issuing green bonds under more favorable financing conditions.

Suggested Citation

  • Jankovic, Irena & Vasic, Vladimir & Kovacevic, Vlado, 2022. "Does transparency matter? Evidence from panel analysis of the EU government green bonds," Energy Economics, Elsevier, vol. 114(C).
    • Handle: RePEc:eee:eneeco:v:114:y:2022:i:c:s0140988322004546
    DOI: 10.1016/j.eneco.2022.106325
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    Cited by:

    1. Inese Mavlutova & Aivars Spilbergs & Atis Verdenhofs & Jekaterina Kuzmina & Ilja Arefjevs & Andris Natrins, 2023. "The Role of Green Finance in Fostering the Sustainability of the Economy and Renewable Energy Supply: Recent Issues and Challenges," Energies, MDPI, vol. 16(23), pages 1-18, November.
    2. Pan, Yuling & Dong, Feng, 2023. "The impacts of energy finance policies and renewable energy subsidy on energy vulnerability under carbon peaking scenarios," Energy, Elsevier, vol. 273(C).
    3. Kaihua Wang, 2024. "Economic policy uncertainty and green finance: evidence from frequency and quantile aspects," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-26, February.

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    More about this item

    Keywords

    Green bonds; Yield determinants; Transparency;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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