The Determinants of Green Bond Issuance in the European Union

The Determinants of Green Bond Issuance in the European Union

Green bonds are a new financial tool that has developed rapidly in the context of climate change risks. Their proceeds are used to finance only environmentally friendly projects. This paper aims to examine the determinant factors of the green bonds issue in the context of the European Union countrie...

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Main Authors: Anamaria Dan, Adriana Tiron-Tudor
Format: Article
Language:English
Published: MDPI AG 2021-09-01
Series:Journal of Risk and Financial Management
Subjects:
green bonds
ESG
sovereign rating
Online Access:https://www.mdpi.com/1911-8074/14/9/446
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spelling doaj-953ee41553ba449c8eeb833bc8f191e52021-09-26T00:32:39ZengMDPI AGJournal of Risk and Financial Management1911-80661911-80742021-09-011444644610.3390/jrfm14090446The Determinants of Green Bond Issuance in the European UnionAnamaria Dan0Adriana Tiron-Tudor1Department of Accounting and Audit, Faculty of Economics and Business Administration, Babeş-Bolyai University, 400084 Cluj-Napoca, RomaniaDepartment of Accounting and Audit, Faculty of Economics and Business Administration, Babeş-Bolyai University, 400084 Cluj-Napoca, RomaniaGreen bonds are a new financial tool that has developed rapidly in the context of climate change risks. Their proceeds are used to finance only environmentally friendly projects. This paper aims to examine the determinant factors of the green bonds issue in the context of the European Union countries. Using linear regression, we explore the impact of environmental, social, governance, and macroeconomic indicators on the level of green bond issues in the period 2014–2019. The results reveal that rating, ESG index; fiscal balance, inflation rate, and population have a significant impact and lead to a higher volume of green bond issuances. Our findings provide valuable insights into the development of the green bond market.https://www.mdpi.com/1911-8074/14/9/446green bondsESGsovereign rating
collection DOAJ
language English
format Article
sources DOAJ
author Anamaria Dan
Adriana Tiron-Tudor
spellingShingle Anamaria Dan
Adriana Tiron-Tudor
The Determinants of Green Bond Issuance in the European Union
Journal of Risk and Financial Management
green bonds
ESG
sovereign rating
author_facet Anamaria Dan
Adriana Tiron-Tudor
author_sort Anamaria Dan
title The Determinants of Green Bond Issuance in the European Union
title_short The Determinants of Green Bond Issuance in the European Union
title_full The Determinants of Green Bond Issuance in the European Union
title_fullStr The Determinants of Green Bond Issuance in the European Union
title_full_unstemmed The Determinants of Green Bond Issuance in the European Union
title_sort determinants of green bond issuance in the european union
publisher MDPI AG
series Journal of Risk and Financial Management
issn 1911-8066
1911-8074
publishDate 2021-09-01
description Green bonds are a new financial tool that has developed rapidly in the context of climate change risks. Their proceeds are used to finance only environmentally friendly projects. This paper aims to examine the determinant factors of the green bonds issue in the context of the European Union countries. Using linear regression, we explore the impact of environmental, social, governance, and macroeconomic indicators on the level of green bond issues in the period 2014–2019. The results reveal that rating, ESG index; fiscal balance, inflation rate, and population have a significant impact and lead to a higher volume of green bond issuances. Our findings provide valuable insights into the development of the green bond market.
topic green bonds
ESG
sovereign rating
url https://www.mdpi.com/1911-8074/14/9/446
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