How massive is the Sovereign Greenium?

This paper assembles a complete sovereign inexperienced bond database and estimates the sovereign greenium. The event of inexperienced bond markets has been some of the necessary monetary breakthroughs within the area of sustainable finance over the past 15 years. A central profit related to inexperienced bonds has been that they exhibit a constructive inexperienced premium (greenium), i.e., a decrease yield relative to an identical typical bond. But, issuances on the sovereign stage have been comparatively current and never properly documented within the literature. We discover that inexperienced bonds are issued at a comparatively small premium (4 foundation factors on common) in Superior Economies. But, importantly, the greenium is rising over time and is significantly bigger (11 foundation factors on common) for Rising Market Economies.