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The Price of Greenness: Some Evidence from Green Bond Markets

September 27, 2018

DECRG Kuala Lumpur Seminar Series

  • We empirically investigate how greenness is priced in green bond markets. Using liquidity-adjusted yield premium of green bonds over their synthetic conventional bonds, we explore determinants of green bond premium. Our evidence shows that on average there is no significant yield premium or discount on green bonds compared to their paired conventional bonds. However, green bonds that are certified by an external reviewer and CBI enjoy green discounts of 7 bps and 9 bps, respectively. Our findings suggest that developing universally accepted standard and definition of greenness will improve the pricing of green bonds and foster the development of green bond markets.

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    Watch and join us via Live Chat: Seminar will be live-streamed, allowing for online audience participation (only available during the seminar)


  • Donghyun Park

    Dr. Donghyun Park is currently Principal Economist at the Economic Research and Regional Cooperation Department (ERCD) of the Asian Development Bank (ADB), which he joined in April 2007. Prior to joining ADB, he was a tenured Associate Professor of Economics at Nanyang Technological University in Singapore. Dr. Park has a Ph.D. in economics from UCLA, and his main research fields are international finance, international trade, and development economics. His research, which has been published extensively in journals and books, revolves around policy-oriented topics relevant for Asia’s long-term development, including middle-income trap, service sector development, and financial sector development. Dr. Park plays a leading role in the production of Asian Development Outlook, ADB’s biannual flagship publication on macroeconomic issues, and leads the team that produces Asia Bond Monitor, ADB’s quarterly flagship report on emerging Asian bond markets.

    Shu Tian

    Dr. Shu Tian is an Economist at the Economic Research and Regional Cooperation Department (ERCD) of the Asian Development Bank (ADB). Prior to joining ADB, she was an Associate Professor of Finance at Fudan University in China. Her main research interests include financial services and institution, investments, and empirical asset pricing. Her research has been published in academic journals on topics relating to financial asset pricing, portfolio allocation and financial market development. Dr. Tian works in the teams that produce Asian Development Outlook and Asia Bond Monitor. Her team also maintains AsianBondsOnline, an online bond market data portal for ASEAN+3 bond markets.


  • WHEN: Thursday, September 27, 2018; 12:30-2:00PM
  • WHERE: World Bank Malaysia Office, Level 3, Sasana Kijang, No. 2, Jalan Dato’ Onn
  • RSVP: Kindly RSVP by Wednesday, September 26, 2018