Rating Regulatory Mechanism Effect Promotion under the Environmental Issuance Effects: Based on the Incentive Difference Hotelling Model

Issuance effects are regarded as one of the most important aspects referring to regulatory guidelines green corporate bond ratings. This paper developed a new incentive difference Hotelling model, considering four major factors, i.e., direct effect issuance, indirect reputation rating agencies and penalties. In this how impact dual mechanism integrated was discussed. Numerical experiments were conducted explore on two defined mechanisms in different situations. The results demonstrate that under each mechanism, issuance indirectly improve effectiveness efficiency regulation by increasing environmental benefit information content information, has greater impact. Moreover, it provides specific recommendations for design regime.