Green Bonds as Catalysts for Energy Efficiency

Abstract

This thesis examines the impact of first-time green bond issuance on corporate energy efficiency within energy-intensive industries in the European Union. The primary research question investigates how green bonds affect post-issuance energy efficiency metrics compared to non- issuing peers and whether these impacts vary across different industries. Utilizing Propensity Score Matching, Linear Regression, and Difference-in-Differences analyses, the study assesses data from 67 first-time green bond issuers and 117 conventional bond issuers over a ten-year period (2013-2023). The findings reveal that green bond issuances significantly enhance energy efficiency metrics, with notable variations across industries. These results suggest that green bonds are effective tools for promoting energy efficiency and sustainability, highlighting the need for tailored approaches to maximize their impact across diverse industrial sectors.