Study on the Motivation and Effect of Green Bond Issuance by Enterprises

Abstract

With the growing global concern for sustainable development and environmental protection, more and more enterprises are considering the use of green financing tools, such as green bonds. This paper examines a literature review that analyzes the motivation and effects of corporate green bonds in the context of this great economic transformation. The growth of green businesses in China has accelerated recently, which has sparked a lot of discussion in the academic community about the different impacts of green bonds and the reasons behind their issuance, we have studied a large number of literatures, and came to the conclusion that the green premium's existence serves as a driving force behind the issuance of green bonds. This conclusion was reinforced by the literature review, which showed that the green premium's existence is still strong. This paper's objectives are to provide an overview of the great literature, demonstrate the state of green bond research as it stands now and the presence of the green premium, and convey our optimism for the continued growth of green bonds.