We examine whether banks offer reduced debt financing costs to green projects. The results show that the loan spread of green projects is lower than that of non-green projects, and there is no statistically significant difference between fossil fuel and non-fossil fuel projects. Especially,...

The presence of risk premium is an issue that weakens the rational expectation hypothesis. This paper investigates changing behavior of time varying risk premium for holding 10 year maturity bond using a bivariate VARMA-DBEKK-AGARCH-M model. The model allows for asymmetric risk premia, causality...