Uncertainty and Green Bond Financing Costs : The Role of Green Finance Policy

This study investigates the effects of economic policy uncertainty (EPU) on green bond financing costs using Chinese green bond data from 2016-2021 and discusses the role of green finance pilot zone policies in hedging uncertainty. The results show that EPU significantly raises the financing costs of green bonds, and the impact is greater than that of brown bonds. Further analysis shows green finance policy alleviates the impact of EPU on green bonds. The results indicate that in the case of high EPU, a more complete green financial system is needed to help the stable development of the green bond market