Green bonds allow firms to commit to climate-friendly projects. Equity investors react positively to their announcement. Based on prior empirical studies, we suggest that green bond commitments help managers signal the profitability of their green projects and that they do so because they are...

Despite the progress that has been made in the measurement of productivity, there have been few attempts to cast emissions of bad outputs within a joint-production framework. This paper does so. It proposes an experimental framework that depends critically on the shadow price estimates of...