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Green bonds in the Russian market: Assessing environmental influence on returns

Author

Listed:
  • Yulia V. Vymyatnina

    (European University at Saint-Petersburg, Saint Petersburg, Russia)

  • Aleksandr A. Chernykh

    (European University at Saint-Petersburg, Saint Petersburg, Russia)

Abstract

In this paper, we study whether the environmental characteristics of assets influence their returns in the case of the Russian bond market. Our main goal for this study was to research this issue for Russia using the same methodology as in studies for developed markets to allow for comparison of results. We use the twin bond methodology and consider expected returns. Our main hypothesis is that brown (i.e., non-green) assets should have a higher yield compared to green ones. Indeed, we find, predictably, that green bonds have a lower yield to maturity. This result is in line with previous results for other markets and suggests that green financing might be cheaper for companies.

Suggested Citation

  • Yulia V. Vymyatnina & Aleksandr A. Chernykh, 2024. "Green bonds in the Russian market: Assessing environmental influence on returns," Russian Journal of Economics, ARPHA Platform, vol. 10(3), pages 211-228, October.
    • Handle: RePEc:arh:jrujec:v:10:y:2024:i:3:p:211-228
    DOI: 10.32609/j.ruje.10.121967
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    References listed on IDEAS

    as
    1. Díaz, Antonio & Escribano, Ana, 2021. "Sustainability premium in energy bonds," Energy Economics, Elsevier, vol. 95(C).
    2. Mikhail Andreyev & Alyona Nelyubina, 2024. "Energy transition scenarios in Russia: effects in macroeconomic general equilibrium model with rational expectations," Bank of Russia Working Paper Series wps122, Bank of Russia.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    green bonds ESG sustainable investing Greenium.;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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