- Title
- Green bonds : Do they bring sustainability to environmentally friendly projects?
- Creator
- Nanayakkara, Madurika
- Date
- 2018
- Type
- Text; Thesis; PhD
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/169217
- Identifier
- vital:13984
- Identifier
- https://library.federation.edu.au/record=b2804107
- Abstract
- This study was motivated by the urgent requirement to scale up the global green bond (GB) market to meet the trillion-dollar financial requirement of environmental resilience projects worldwide, and by the absence of prior scientific investigations to determine solutions to the GB market’s problems from different perspectives. Three empirical studies were conducted to provide a holistic view of the GB market. The first study investigated the perception gaps of different stakeholders in the GB market in terms of assessing the ‘greenness’ of projects funded through GBs, investors’ expectations of GB investments, and the factors hindering the growth of the GB market. A qualitative method was employed with document review, followed by interviews, a questionnaire survey and peer debriefing. The study found that both the demand and supply sides of the GB market are inadequate to meet the world’s green investment requirements. The main obstacles hindering the market growth are fear for greenwashing, definitions that lack clarity, the absence of large-scale issues, and the high costs associated with complex reporting processes and third-party certifications. The second study assessed the influence of GB principles on investor demand for GBs, using global GBs issued for the period 2007 to 2016. Bid–ask spread and yield spread were used to measure the investor demand. The results indicated a significant positive relationship between the degree of compliance and investor demand. The third study compared the credit spreads of corporate GBs and conventional bonds, measured by option-adjusted spread daily data for the period 2016 to 2017 worldwide. Hybrid method of panel data regression was employed to analyse the data, and found that GBs are traded at a premium in the world market, compared with conventional bonds. This thesis suggests several policy implications based on the findings of these studies to scale up the GB market as a new source of financing.; Doctor of Philosophy
- Publisher
- Federation University Australia
- Rights
- Copyright Madurika Nanayakkara
- Rights
- This metadata is freely available under a CCO license
- Subject
- Green bond market; Sustainability; Environmental resilience projects
- Full Text
- Thesis Supervisor
- Colombage, Sisira
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