What Drives Investment in Green Bonds?
This book analyzes the institutional foundations, global expansion, and investor dynamics of green bonds in Japan, China, and beyond. Beginning with the evolution of international standards—most notably the Green Bond Principles—it traces how GB issuance surged after the Paris Agreement and how governments, municipalities, and industries have embraced the market. Drawing on original surveys and empirical models, the book uncovers what truly motivates investors. In Japan, individual investors reveal a powerful blend of environmental values and social responsibility that often outweighs financial return. In China, institutional investors show strong demand shaped by policy signals, project transparency, and certification practices. Rich in data and comparative insight, this volume illuminates the forces propelling the green bond market and offers an essential guide for scholars, policymakers, and practitioners seeking to understand or shape the future of sustainable finance.
Professor Kentaka Aruga received his PhD from the University of Rhode Island in 2010. Since then, he has held several research positions before assuming his current role as Professor at Saitama University. He teaches modules in environmental and natural resource economics. His research interests include agricultural economics, non-renewable resources, fisheries economics, energy economics, time series econometrics, and climate finance. He was among the first authors to analyze investor behavior toward green bonds by conducting surveys of both retail and institutional investors. Professor Aruga has authored or co-authored more than 60 journal articles, over five book chapters, and three books.