Research On The Cost Advantage Of Green Bond Issuance In China

In recent years,environmental deterioration caused by rapid economic development has attracted more and more attention,which has seriously affected people’s daily life and the healthy development of economy.Therefore,the development of green sustainable economy is particularly important.As a new financing tool,green bond can slow down and adapt to climate change.Since 2016,China’s green bond market has developed rapidly.As of December 31,2020,China has issued 972 green bonds,with a total issuance scale of 1087.61 billion yuan.In order to mobilize the enthusiasm and initiative of enterprises to issue green bonds,guide funds to gather in green industries,promote the green transformation of various industries and enhance the momentum of sustainable economic development,therefore,it is particularly important to study whether there is a cost advantage in issuing green bonds in China.Based on the analysis of the status quo of China’s green bond development and the reasons for its issuance cost advantage,this paper selects the data of green bonds and non-green bonds of the same type issued from January 1,2016 to September 30,2020,and selects 624 green bonds and 3444 non-green bonds of the same type by using the propensity matching method,with a total of 4068 samples as the data of empirical analysis.Then,we choose the bond issuing coupon rate as the explanatory variable,green as the explanatory variable,and take the enterprise scale,asset liability ratio,return on equity,bond issuing scale,issuing period,GDP growth rate,debt rating and market interest rate as the control variables.Through regression analysis,we can judge whether there is a issuance cost advantage by the size and positive and negative of green coefficient.By using group regression method,this paper explores the influence of three factors,such as the third-party certification authority,the nature of the issuer and the credit rating,on the issuance cost advantage.The empirical study shows that:(1)Green bonds have a cost advantage in issuance.(2)The issuance cost advantage of green bonds certified by a third party is more obvious.(3)There is an issuance cost advantage for green bonds issued by state-owned enterprises,while there is no issuance cost advantage for green bonds issued by private enterprises.(4)There is an issuance cost advantage for green bonds with a credit rating of 3A,and there is no issuance cost advantage for green bonds below 3A.Based on this conclusion,this article proposes suggestions from four aspects: perfecting the operating mechanism of the green bond market,perfecting the third-party certification and evaluation system,giving private enterprises certain policy inclination,and improving the information disclosure system.