Authors: Theofanis Zacharatos, Athanasios Tsagkanos

Title: Green Investments - Green State Bonds, "Analysis of the financial performance of Green Bonds"

Abstract

Natural resources in our planet are restricted, while human needs are insatiable. A large number of academic studies points out that the economic activity we are developing has a negative impact on the environment. It is understood that the model of production and development so far (business as usual), leads to social, economic and ecological bankruptcy. So, we conclude that the adoption of a new model of economic growth, with respect to the environment and the people, is now of crucial importance. For these reasons, the development of the appropriate financial tools for the accomplishment of environmentally-friendly investments should be explored. The present paper aims to demonstrate the evolution of green bonds and the trends prevailing, to analyze their structural elements, their viability and their usefulness. Subsequently in the present paper, it will be examined, through the statistical analysis of data and hypothesis testing, whether green bonds constitute an alternative investment solution in comparison to conventional bonds. Finally, the results of the statistical analysis and the conclusions derived from the above procedure will be presented.  The main goal of the present paper is the prominence of the necessity for the application of a different model of economic development, the  one of sustainable development in respect to the environment and the society. This paper is based in the master thesis that had been submitted for the HOU and the postgraduate program "MSc in Banking".