Do Investors Care about Impact?
Journal
The Review of Financial Studies
ISSN
0893-9454
Type
journal article
Date Issued
2022
Author(s)
Abstract (De)
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.
Language
English
Refereed
Yes
Subject(s)
Eprints ID
267543
File(s)![Thumbnail Image]()
open.access
Name
Do_Investors_Care_About_Impact_-Final.pdf
Size
2.07 MB
Format
Adobe PDF
Checksum (MD5)
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