The Empirical Research on the Impact of Pro-Environmental Factors on the Financing Cost of Green Bond

Abstract Green bonds are an important part of green finance and a significant financing method for enterprises to make socially responsible investments. This thesis analyzes the impact of pro-environmental factors on the financing cost of green bonds by the data of green bonds issued from 2016 to 2020. The results show that the better the environmental performance of the issuer's region, the lower the financing cost of green bonds, and the third-party certification reduces the financing cost of green bonds. Further research shows that high pollution areas and high pollution industries enhance the punitive role of environmental pollution financing. Regional environmental performance mainly affects the financing cost of green bonds through tax suppression mechanism and credit penalty mechanism, while third-party certification affects the financing cost of green bonds through tax relief mechanism and financing channel mechanism. This paper provides empirical evidence and policy inspiration for reducing the financing cost of issuing green bonds and promoting the perfection of the green bond system.