EnglishFrançais

November 4th, 2020 workshop online with Olivier David Zerbib

Published October 13th, 2020

Workshop Online 15:00-16:30

Olivier David Zerbib (Tilburg, ISFA et CREST- Polytechnique-ENSAE)  will present the article “Environmental Impact Investing” written with Tiziano de Angelis and Peter Tankov
Abstract: 
This paper shows how green investing spurs companies to reduce their greenhouse gas emissions by raising their cost of capital.  Companies’ emissions decrease when the proportion of green investors and their environmental stringency increase.  However, heightened uncertainty regarding future environmental impacts alleviates the pressure on the cost of capital for the most carbon-intensive companies and pushes them to increase their emissions.  We provide empirical evidence supporting our results by focusing on United States stocks and using green fund holdings to proxy for green investors’ beliefs.  When the fraction of assets managed by green investors doubles, companies’ carbon intensity drops by 5% per year.