IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v19y2026i7p545-d1996353.html

Green Bond Market Development and Fiscal Sustainability in the EU: Drivers of Market Entry and Depth

Author

Listed:
  • Radosveta Krasteva-Hristova

    (Department of Accounting, Tsenov Academy of Economics, 5250 Svishtov, Bulgaria)

  • Vanya Georgieva

    (Faculty of Economics, Agricultural University-Plovdiv, 4000 Plovdiv, Bulgaria)

Abstract

Green bond markets have expanded rapidly across the European Union, but development remains uneven across Member States. Using a balanced EU-27 panel for 2021–2025, this study distinguishes sovereign market entry from the depth of the overall green debt market. Pooled Probit and Tobit estimates show that larger economies are substantially more likely to issue sovereign green bonds, whereas government debt and the budget balance are not significantly associated with entry. Market depth is positively associated with economic scale and a stronger budget balance, although the latter relationship partly overlaps with institutional quality. Environmental taxation is not significantly associated with market depth, providing no evidence of substitution for green debt financing. The findings support measures to lower entry costs and strengthen institutional capacity in smaller Member States.

Suggested Citation

  • Radosveta Krasteva-Hristova & Vanya Georgieva, 2026. "Green Bond Market Development and Fiscal Sustainability in the EU: Drivers of Market Entry and Depth," JRFM, MDPI, vol. 19(7), pages 1-29, July.
    • Handle: RePEc:gam:jjrfmx:v:19:y:2026:i:7:p:545-:d:1996353
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/19/7/545/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/19/7/545/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:19:y:2026:i:7:p:545-:d:1996353. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.