Green Bonds: the Sovereign Issuers’ Perspective

Green Bonds: the Sovereign Issuers’ Perspective

Photo by Paul Blenkhorn on Unsplash

Raffaele Doronzo, Vittorio Siracusa and Stefano Antonelli
Mercati, infrastrutture, sistemi di pagamento, 2021
Level: mittel
Perspektiven: Ökologische Ökonomik, Institutionenökonomik, Neoklassik
Thema: Mikroökonomie & Märkte, Geld & Schulden
Format: Policy Paper & Advocacy
Link: https://www.bancaditalia.it/pubblicazioni/mercati-infrastrutture-e-sistemi-di-pagamento/approfondimenti/2021-003/N.3-MISP.pdf?language_id=1

Exploring Economics Working Paper Selection

We collect and republish selected Working Papers and Journal Articles on Exploring Economics.

Learn more

Green Bonds: the Sovereign Issuers’ Perspective

Raffaele Doronzo, Vittorio Siracusa and Stefano Antonelli  | 2021 | Mercati, infrastrutture, sistemi di pagamento, No. 3
 

 

 

Abstract: After a brief illustration of sovereign green bonds’ features, this paper describes the market evolution and identifies the main benefits and costs for sovereign issuers. The financial performance of these securities is then analysed. In the primary market, the yields at issuance of sovereign green bonds are compared with the yields of similar non-green bonds. In the secondary market, the evolution of the yields of the sovereign green bonds issued by France, Belgium, Ireland and the Netherlands is analysed. The results show that the sovereign green bonds’ performance is essentially in line with that of conventional bonds. However, this conclusion does not represent a disincentive to enter this market, since the choice of issuing this kind of security does not simply hinge upon economic convenience valuations: green bonds are a valid tool for mitigating environmental risks and coping with the intergenerational trade-offs implied by climate-related policies.

Read here

 

Stay tuned!

Subscribe to our newsletter to learn about new debates, conferences and writing workshops.

Subscribe!

Comment from our editors:

Green bonds are all the rage in the current efforts to try and create a financial system contributing to a sustainable economy. But how to precisely delineate them from conventional bonds? And will they earn investors about the same, less or more yield? Above all, will they hence be an attractive tool from the issuer's point of view? This working paper from the "Markets, infrastructures, payment system" series by the Banca d'Italia makes a valuable contribution to a debate that is decidedly pluralistic in nature: Is it sensible to create 'green' financial instruments? Or were it better to leave finance alone and then employ the proceeds in the fight against climate change?

Go to: Green Bonds: the Sovereign Issuers’ Perspective

This material has been suggested and edited by:

Jakob Steffen
Tags: bonds | credit | debt | finance | fiscal policy | green growth | markets | Working Paper
This module examines current socio-political issues through the lens of pluralism, that is pluralism of theory, pluralism of method and interdisciplinary pluralism 2020 Level: leicht Pluralist Economic Analysis Sophia Kuehnlenz Manchester Metropolitan University The article discusses the state’s influence on innovation through financial support and provides examples how the state could receive a financial share of successful enterprises in order to keep on driving innovation in the future. 2013 Level: leicht State of innovation: Busting the private-sector myth Mariana Mazzucato https://www.newscientist.com Was bedeutet Wirtschaftsdemokratie und wie werden darin Entscheidungen getroffen? Wie unterscheidet sich Wirtschaftsdemokratie von Mitsprache und kann über Wohlstand und Wachstum demokratisch entschieden werden? Alex Demirovic stellt im Rahmen der Ringvorlesung „Wohlstand ohne Wachstum“ Überlegungen zur Anwendung demokratischer Entscheidungen auf Produktion und Finanzmärkte an. Dabei hinterfragt er die Dichotomie von Markt und Staat und diskutiert, welche Folgen Wirtschaftsdemokratie für die Konzepte Eigentum, unternehmerische Freiheit oder Wettbewerbsfähigkeit hat. 2013 Level: leicht Wirtschaftsdemokratie als Fortschritt Alex Demirovic ecapio Most mainstream neoclassical economists completely failed to anticipate the crisis which broke in 2007 and 2008. There is however a long tradition of economic analysis which emphasises how growth in a capitalist economy leads to an accumulation of tensions and results in periodic crises. This paper first reviews the work of Karl Marx who was one of the first writers to incorporate an analysis of periodic crisis in his analysis of capitalist accumulation. The paper then considers the approach of various subsequent Marxian writers, most of whom locate periodic cyclical crises within the framework of longer-term phases of capitalist development, the most recent of which is generally seen as having begun in the 1980s. The paper also looks at the analyses of Thorstein Veblen and Wesley Claire Mitchell, two US institutionalist economists who stressed the role of finance and its contribution to generating periodic crises, and the Italian Circuitist writers who stress the problematic challenge of ensuring that bank advances to productive enterprises can successfully be repaid. 2014 Level: mittel Finance and Crisis: Marxian, Institutionalist and Circuitist approaches Georgios Argitis, Trevor Evans, Jo Michell, Jan Toporowski Institute for International Political Economy Berlin La teoría monetaria moderna (TMM) es una escuela de pensamiento macroeconómico y monetario centrada en el análisis del sistema monetario y crediticio y, en particular, en la cuestión de la creación de crédito por parte del Estado. Bebe de la tradición poskeynesiana y del chartalismo, que fue elaborada por Georg Friedrich Knapp (Ehnts 2020). La TMM cuestiona tres falsas creencias elementales respecto a la teoría monetaria que surgieron en el periodo neoclásico, y puede así entenderse como una alternativa a la concepción neoclásica del dinero. 2020 Level: leicht Teoría monetaria moderna Nathalie Freitag Exploring Economics Although money plays a key role in our lives, the workings of our monetary system are a mystery to most of us. ‘The Waterworks of Money’ by cartographer Carlijn Kingma is an attempt to demystify the world of big finance. It visualizes the flow of money through our society, its hidden power made manifest. If you see money as water, our monetary system is the irrigation system that waters the economy. The better the flow, the more prosperous society will be. Just as water makes crops thrive, so money sets the economy in motion. Or at least that’s the idea. In reality, inequality is growing in many countries and people are dealing with a ‘cost of living crisis’. Meanwhile, the progress with making our economies sustainable is stalling, and financial instability remains an ongoing threat. These problems cannot be seen in isolation from the architecture of our money system. If we truly want to tackle them, we will have to address the design flaws of our current money system. For more info check: https://www.waterworksofmoney.com or https://www.carlijnkingma.com For the Dutch version of the animation check: https://www.ftm.nl/waterwerk Current exhibitions: 'The Future of Money' at Kunstmuseum Den Haag, 14 April, 2023 - 8 September 2023. 'Plumbing The System' at the Dutch Pavilion of the Venice Biennale, 20 May 2023 - 26 November 2023 The second animation video of this series will be released in September 2023. The Waterworks of Money is a collaboration of cartographer Carlijn Kingma, investigative financial journalist Thomas Bollen, and professor New Finance Martijn van der Linden. Kingma spent 2300 drawing hours, based on in-depth research and interviews with more than 100 experts –ranging from central bank governors and board members of pension funds and banks to politicians and monetary activists. The structure of our monetary system is not a natural phenomenon. We can choose to change its architecture. Designing the money system– and the laws and institutions that govern it–is ultimately a democratic task, and not a commercial or technocratic one. In practice, however, there is a major obstacle impeding the democratic process: financial illiteracy. By making finance and money needlessly complex, economists, bankers and tax specialists have turned most of us into ‘financial illiterates’. Everyone who doesn’t speak their financial jargon is excluded from the democratic debate on how our monetary system should work. The Waterworks of Money bypasses the financial jargon. It is an attempt to boost systemic financial literacy. Only if ordinary citizens develop their own vocabulary to participate in the debate about their financial future, can they tell their politicians which kind of ‘financial irrigation system’ they want. Authors: Carlijn Kingma, Thomas Bollen, Martijn Jeroen van der Linden Animation: Tiepes, Christian Schinkel, Cathleen van den Akker Narrator: Loveday Smith Translation: Erica Moore Voice recording: Huub Krom Music and sound: Rob Peters Photography: Studio OPPA Partners: Follow the Money, De Haagse Hogeschool, Stimuleringsfonds Creatieve Industrie, Brave New Works, Rabobank, Kunstmuseum Den Haag, Rijksmuseum Twenthe 2023 Level: leicht The Waterworks of Money   Carlijn Kingma Was ist Inflation, welche unterschiedlichen Formen von Inflation gibt es und was sind deren Ursachen? Eine erste Einführung zum Thema Inflation. 2012 Level: leicht Inflation einfach erklärt   explainity

Spenden

Um sich weiterhin für Pluralismus und Vielfalt in der Ökonomik einzusetzen, benötigt das Netzwerk Plurale Ökonomik e.V. Unterstützung von Leuten wie dir. Deshalb freuen wir uns sehr über eine einmalige oder dauerhafte Spende.

Spenden