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Multi-Criteria Analysis of Green Bonds: Hybrid Multi-Method Applications

Author

Listed:
  • Antonio Lombardi Netto

    (Department of Production, School of Engineering, Universidade Estadual Paulista Júlio de Mesquita Filho, Guaratingueta 12516-410, Brazil)

  • Valerio Antonio Pamplona Salomon

    (Department of Production, School of Engineering, Universidade Estadual Paulista Júlio de Mesquita Filho, Guaratingueta 12516-410, Brazil)

  • Miguel Angel Ortiz Barrios

    (Department of Productivity and Innovation, Universidad de la Costa CUC, Barranquilla 081001, Colombia)

Abstract

There is an increasing pressure by the community and customers forcing companies to insert environmental concerns in their practices. To help companies initiatives, the green bonds market was created. Our research question is “How to select bonds in a growing billion-dollar market?” This paper presents a multi-criteria decision analysis (MCDA) model to enable investors identify opportunities based not only in opinions, but grounded on objective facts. Analytic hierarchy process (AHP), complex proportional assessment (COPRAS), full consistency method (FUCOM), step-wise Weights Assessment Ratio Analysis (SWARA), and technique of order preference similarity to the ideal solution (TOPSIS) are MCDA methods applied in this paper. Top-fifteen green bonds ranked by specialized media were assessed with the proposed MCDA model. Criteria included the Environmental Performance Index (EPI) proposed by Yale University, and common financial indicators as assets, risks ( β ), and dividends. The new ranks from MCDA are compared each other and compared with the rank published by specialized media.

Suggested Citation

  • Antonio Lombardi Netto & Valerio Antonio Pamplona Salomon & Miguel Angel Ortiz Barrios, 2021. "Multi-Criteria Analysis of Green Bonds: Hybrid Multi-Method Applications," Sustainability, MDPI, vol. 13(19), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10512-:d:640604
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    References listed on IDEAS

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