Research On The Evaluation Of Blue Bond Investment Value

In 2020,the global debut of the first non-financial corporate blue bond issued by Qingdao Water Group marks the first appearance of blue bonds in the domestic market.Currently,blue bonds issued in China are mainly focused on sustainable development in blue economy areas such as seawater desalination and offshore wind power,which have significant environmental benefits.However,through the review of relevant literature,it was found that research on blue bonds is mostly concentrated on its concept,definition,and development history,with a lack of research on its value evaluation.As a new financial instrument with special attributes and social significance,is there a possibility that the value of blue bonds has been overlooked? Therefore,this article aims to evaluate the investment value of blue bonds,accurately estimate their investment value,reduce investment risks,promote the development and research of the blue bond market,and provide a certain reference for the estimation of the investment value of blue bonds in China.This article evaluates the investment value of blue bonds by combining fixed-rate bonds with physical options.The method divides the valuation of blue bonds into fixed and “floating” parts,using a cash flow discount model for the fixed part and introducing an option pricing model for the “floating” part.By collecting carbon emission trading data and using the yield of carbon emission trading prices to represent the “floating”value of blue bonds,a generalized autoregressive conditional heteroskedasticity model is established to predict the logarithmic volatility of carbon emission trading returns,which finally results in the valuation of the “floating” part of blue bonds.Finally,a complete valuation of 16 blue bonds was conducted using the established valuation model,and it was found that there was a significant difference between the theoretical value and the actual price of blue bonds,indicating that the overall value of blue bonds may be underestimated and that the environmental benefits of blue bonds may be overlooked.According to the research conclusions,the following suggestions are proposed:the relevant government departments should formulate clearer policies,establish a blue bond market system,create incentive and restraint mechanisms for blue bonds,establish evaluation standards for blue bonds,and increase publicity for blue bonds.Issuers should regulate the use of funds raised,improve information disclosure systems,choose appropriate bond issuing institutions,and develop reasonable blue bond frameworks.Investors should pay attention to the risks of blue bonds,choose appropriate blue bonds,strengthen their ability to obtain market information,identify the true value of blue bonds,and make correct decisions,while contributing to the development of the blue bond market while obtaining investment returns.