Comparing the willingness to invest returns among green, sustainability, and blue bonds

This study explores whether investors' willingness to invest returns (WTIR) differs across environmental and sustainability bonds (ESBs) with varying scopes. Employing the double-bound dichotomous choice contingent valuation method (DBDC-CVM), the research surveyed Japanese retail investors to estimate their average levels of WTIR for green, sustainability, and blue bonds, respectively. The study discovered that investors are willing to invest in bonds with a stronger environmental focus such as green and blue bonds at a lower return rate, in contrast to sustainability bonds that address broader social issues. This suggests the importance for issuers of ESBs to clarify the specific focus of the bonds when promoting investment in such securities. Moreover, knowledge of ESBs can increase the WTIR, highlighting the need for policies aimed at enhancing information dissemination. Additionally, the levels of social responsibility and altruism among investors can increase the WTIR, emphasizing the significance of environmental and sustainability education. This underscores the significance of educating individuals to foster greater interest in environmental and social issues, cultivating a mindset that extends to caring about the well-being of others.