Research On Green Bond Supporting Green Building Development

Currently,countries around the world are facing a severe situation of environmental pollution and energy shortage.The construction industry is accountable for half of China’s carbon emissions every year,and energy consumption accounts for a large proportion.Green buildings can not only have a role in energy conservation and emission reduction during the construction process,but also continuously achieve energy-saving and water-saving effects in daily operations,meeting the dual challenges of environment and energy.Therefore,it urgent to vigorously develops green buildings.Due to the relatively short period of introduction of green buildings in China,enterprises’ understanding or technical means of green buildings is not mature,and the construction of green buildings requires incremental costs compared to traditional buildings.Therefore,this article studies the mechanism of financing cost reduction,economic and environmental benefits,and credit endorsement for enterprises caused by the issuance of green bonds by real estate enterprises,Study whether issuing green bond financing can promote the construction of green buildings by real estate enterprises and promote green transformation.This article selects the case study of Xuhui Group’s issuance of green bonds for financing.Funds raised from three green bonds were all invested in the green residential project of Shandong Xuhui Baiyue Mansion and the green office building project of Shanghai Zhihui Plaza.The group has also become the only mainland Chinese real estate enterprise among the first batch of enterprises in the Green Exchange,and has a certain representation among the real estate enterprises issuing green bonds.This article first examines the existing literature on green buildings,green bonds,and green financing for real estate enterprises.Secondly,through the research of dual difference model,it is confirmed that the issuance of green bonds by real estate enterprises has a significant positive impact on promoting the development of green buildings,and through mechanism testing,it is verified that the issuance of green bonds by enterprises promotes the development of green buildings through the joint action of credit,cost,and benefit mechanisms.After selecting one of the representative cases,Xuhui Group will conduct a separate study on the impact of issuing green bonds financing on the development of green buildings,analyze the motivation for Xuhui Group to issue green bonds,compare and analyze the cost mechanism of reducing financing costs and increasing incremental costs of green projects caused by issuing green bonds,and analyze the benefit mechanism and credit endorsement role of issuing green bonds in promoting real estate enterprises to build green buildings.The mechanism analysis of specific cases echoes the three mechanism paths in the previous empirical analysisThe research conclusion of this article is that the issuance of green bonds has a significant positive impact on the development of green buildings in China’s real estate enterprises.Xuhui Group has obtained various benefits in issuing green bonds,and the group’s development level of green buildings has also been continuously strengthened.The main motivation for Xuhui to issue green bonds is that the government promotes green bond policies and vigorously promotes green buildings.Xuhui responds to the call to achieve green transformation by issuing bonds,while also being able to raise funds at low cost under tight financing conditions,meet working capital needs,and improve the company’s debt structure.By calculating and analyzing the financing costs associated with issuing green bonds and the incremental costs of building green projects,it is concluded that issuing green bonds can significantly reduce the cost of building green buildings for enterprises.In addition,enterprises can also obtain economic,financial,and social benefits,and consumers can obtain protection through the credit endorsement role of green bonds to reduce information asymmetry,For real estate enterprises,issuing green bonds can help them build green projects at a lower cost,continuously obtain higher benefits in daily operations,and gain recognition from the public.Therefore,issuing green bonds can promote real estate enterprises to build more green projects and promote the development of green buildings.