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Vol. 2 No. 1 (2026): May

Advancing green bond pricing in India: A theory-driven framework integrating certification, disclosure and market liquidity

https://doi.org/10.35912/sepp.v2i1.3692

Abstract

Purpose: This study develops a structured framework to explain how certification, disclosure, liquidity, regulatory incentives, and issuer credibility influence green bond pricing in India. It integrates theory and market evidence to clarify how these determinants shape investor behavior and pricing outcomes.

Methodology: A conceptual research design is used, drawing on signalling, information asymmetry, and market microstructure theories. This study reviews international literature, SEBI and RBI regulations, and market practices to construct an integrated pricing framework and nine propositions for empirical validation.

Results: The analysis shows that credible certification, strong disclosure, deeper liquidity, digital transparency tools, and supportive regulatory measures reduce information gaps, strengthen environmental credibility, and enhance pricing efficiency. These mechanisms lower yield spreads, increase investor participation, and expand financing for climate-aligned infrastructure.

Conclusions: This study highlights that certification quality, disclosure practices, liquidity, regulatory support, and issuer credibility influence green bond pricing in India. Stronger reporting standards and regulatory reforms can improve transparency and investor confidence.

Limitations: The framework is conceptual and requires validation using panel data on sovereign, corporate, and municipal green bonds in India.

Contributions: This study introduces a unified, theory-driven pricing model tailored to India’s regulatory and institutional context and offers nine testable propositions to guide future empirical research.

Novelty: This study provides one of the first integrated models linking certification, disclosure, liquidity, and regulatory incentives to pricing outcomes in India, offering a structured roadmap for empirical testing and policy design.

Keywords

Certification Disclosure Green Bonds Pricing Efficiency Sustainable Finance

How to Cite

Reddy, K. M. ., Srinivas, C., & Devi, P. U. M. . (2026). Advancing green bond pricing in India: A theory-driven framework integrating certification, disclosure and market liquidity. Studies in Economy and Public Policy, 2(1), 1–16. https://doi.org/10.35912/sepp.v2i1.3692

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Author Biographies

Karri Manikanteswara Reddy Adikavi Nannaya University, Rajahmundry, Andhra Pradesh, India

Mr. Karri Manikanteswara Reddy is currently serving as an Assistant Professor in the Department of Commerce and Management Studies at Adikavi Nannaya University's MSN Campus, Kakinada. With nine years of combined teaching and industrial experience, he has contributed to curriculum development and postgraduate instruction across management and commerce disciplines. He holds multiple qualifications, including a B.Tech, MBA, PGDIBO, M.Com, PGDHE, and MPA.

He is in the final stage of his doctoral work and is about to submit his Ph.D. thesis in the field of Climate Change Finance. He has qualified for the UGC-NET and AP-SET in Management, and the AP-SET in Commerce. His research interests include Marketing Research, Financial Markets, Climate Change, Carbon Finance, and FinTech.

Ch Srinivas Sri YN College, Naraspur, Andhra Pradesh, India

Prof. Ch. Srinivas is a Professor and Director of the HRD Centre at Sri Y N College, Dr. C. S. Rao PG Centre. With over three decades of postgraduate teaching experience, he has played a sustained role in academic leadership, curriculum design, and faculty development. He holds an M.Com and an MBA, both with first-class distinction, and earned his Ph.D. from Andhra University, where he received the Gold Medal for the best thesis.He has more than eleven years of administrative experience as Director of the HRD Centre, contributing to institutional training and academic coordination. His research contributions include publications in journals and conferences, a completed Minor Research Project under RUSA 2.0, and the supervision of doctoral scholars, with several candidates nearing submission.He has authored four books and has organised multiple workshops, seminars, and training programmes. His initiatives include extensive training for municipal and panchayat secretariat employees in West Godavari district, along with programmes on employability skills and personality development.Prof. Srinivas has been recognised with the Ugadi Seva Puraskar and multiple service awards from Lions Club International. He has delivered numerous invited lectures on personality development, women empowerment, skill development, and soft skills across educational institutions and professional bodies in the East and West Godavari districts.

P Uma Maheswari Devi Adikavi Nannaya University, Rajahmundry, Andhra Pradesh, India

Prof. P. Uma Maheswari Devi is a Professor in the Department of Commerce and Management Studies at Adikavi Nannaya University. With eighteen years of teaching experience, she has contributed significantly to postgraduate instruction, academic administration, and institutional development. She holds an MBA, M.Com., B.Com., and a Ph.D. Her research portfolio includes five national and forty international journal publications, along with presentations at twenty-five national and fifteen international conferences. She has completed R&D and consultancy projects, currently manages ongoing research assignments, and has supervised approximately fifty postgraduate dissertations. She has guided five doctoral scholars to successful award.She has organised academic programmes including conferences, seminars, and workshops, and has participated in multiple professional development activities such as refresher and orientation courses. Her academic engagements also include international exposure through visits to the USA and Singapore.Prof. Uma Maheswari Devi was conferred the State Best Teacher Award for the year 2025 by the Andhra Pradesh State Government. She is also a recipient of the Best Women Researcher Award under the Elsevier SSRN Research Awards (2022) and the Andhra Pradesh–Netherlands Biotechnology Fellowship Programme at the Institute of Public Enterprise.Her administrative roles include serving as Women Cell Coordinator, Director of Admissions, Academic Council Member, Board of Studies Member, and Governing Body Member, contributing to academic quality assurance, student welfare, and institutional governance.

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Authors

1 . Karri Manikanteswara Reddy
Adikavi Nannaya University, Rajahmundry, Andhra Pradesh, India
2 . Ch Srinivas
Sri YN College, Naraspur, Andhra Pradesh, India
3 . P Uma Maheswari Devi
Adikavi Nannaya University, Rajahmundry, Andhra Pradesh, India

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Vol. 2 No. 1 (2026): May
Section: Articles
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