Faculty News

Professor Jeffrey Wurgler's joint research on the green bonds is featured

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Excerpt from Fortune -- "In April, four economists released a working paper that gave green-bond fans reason for optimism. They found that municipal bonds labeled 'green' paid six basis points (0.06%) less in yield than nongreen bonds—and that the effect doubled or tripled for bonds that took the extra step of being certified green. Bond yields fall when buyers drive up prices, so the lower yields suggest that demand for green bonds is stronger than the norm. On a typical muni bond, that could result in millions of dollars in savings on interest. Compared with those benefits, 'the cost of certifying a green bond is modest,' says coauthor Jeffrey Wurgler, a professor of finance at the NYU Stern School of Business, while borrower and investor alike 'get a green glow.'"

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