No. 832 - Was Covid-19 a wake-up call on climate risks? Evidence from the greenium

by Danilo Liberati and Giuseppe Marinelli
March 2024
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This paper provides an empirical analysis of the existence of the greenium, i.e. the negative spread between the yields of green and conventional bonds with the same characteristics. It then tests the hypothesis that Covid-19 has raised awareness of the risks associated with extreme shocks, such as those potentially caused by climate change.

The results show the presence of a greenium in a sample of international bonds for the period 2017-22, which may partly depend on the strong investor demand for green bonds. The pandemic shock only acted temporarily as a wake-up call for climate risks, leading to a widening of the greenium that faded after the end of the emergency.

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  1. 12 March 2024
    No. 832 - Was Covid-19 a wake-up call on climate risks? Evidence from the greenium
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