Camille Macaire & Alain Naef

“Greening Monetary Policy: Evidence from the People’s Bank of China”

Event description

 Camille Macaire and Alain Naef presented the paper “Greening Monetary Policy: Evidence from the People’s Bank of China.” From the abstract:

In June 2018, the People’s Bank of China (PBoC) decided to include green financial bonds into the pool of assets eligible as collateral for its Medium Term Lending Facility. The PBoC also gave green financial bonds a “first-among-equals” status. We measure the impact of the policy on the yield spread between green and non-green bonds. We show that pre-reform trends are minor, meaning that both green and non-green bonds yields evolved similarily at the time of the reform. Using a difference-in-differences approach, we show that the policy increased the spread by 46 basis points. Our approach differs from the literature in that we match bonds under review with non-green bonds with similar characteristics and issued by the same firm, which improves the relevance of firm fixed-effects. We also specifically investigate the impact on green bonds. The granularity of the data (daily) also allows us to conduct a dynamic analysis by dividing the sample into weekly, monthly and quarterly observations. Our results also show that the impact of the reform starts to materialize after three weeks, has a maximum effect after three months, and has a persistent effect over six months.


Emanuele Campiglio
Associate Professor, University of Bologna

Camille Macaire

Economist, Banque de France and Research Associate, CEPII
Camille Macaire is a research economist at the Banque de France focusing on China. Based in Shanghai for three years, she completed her PhD on the reform of the financial system in China with the CERDI University. Previously, she has had a professional experience as an international economist in financial institutions in Paris.

Alain Naef

Economist, Banque de France
Alain Naef is a research economist at the Banque de France. He completed his PhD at the University of Cambridge, followed by at postdoc at UC Berkeley. His research mainly focuses on climate finance and financial history. He recently published a paper on the carbon footprint of the Swiss National Bank and currently works on understanding the ownership structure of oil majors.

Paper and slides

"Greening Monetary Policy: Evidence from the People's Bank of China" (Paper)

"Greening Monetary Policy: Evidence from the People's Bank of China" (Slides)



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