Do Investors Care about Impact?

Item Type Journal paper
Abstract We assess how investors’ willingness-to-pay (WTP) for sustainable investments responds to the social impact of those investments, using a framed field experiment. While investors have a substantial WTP for sustainable investments, they do not pay significantly more for more impact. This also holds for dedicated impact investors. When investors compare several sustainable investments, their WTP responds to relative but not to absolute levels of impact. Regardless of investments' impact, investors experience positive emotions when choosing sustainable investments. Our findings suggest that the WTP for sustainable investments is primarily driven by an emotional rather than a calculative valuation of impact.
Authors Heeb, Florian; Kölbel, Julian F; Paetzold, Falko & Zeisberger, Stefan
Journal or Publication Title The Review of Financial Studies
Language English
Subjects finance
Refereed Yes
Date 2022
ISSN 0893-9454
Official URL
Depositing User Prof. PhD Julian Kölbel
Date Deposited 07 Oct 2022 18:32
Last Modified 07 Oct 2022 18:37


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Heeb, Florian; Kölbel, Julian F; Paetzold, Falko & Zeisberger, Stefan (2022) Do Investors Care about Impact? The Review of Financial Studies, ISSN 0893-9454

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