We develop a new measure of impact elasticity, defined as a firm's change in environmental
impact due to a change in its cost of capital. We show empirically that a reduction in …

What do markets for voluntary climate protection imply about people's valuations of
environmental protection? I study this question in a large-scale field experiment (N …

Economics recommends combating climate change with carbon pricing, but green finance
(ESG investing, sustainable finance regulation) is becoming widespread. In a unified model …

The greenium (the expected return of green securities relative to brown) is a central impact
measure for ESG investors. Replicating the literature's wide range of greenium estimates …

Using global evidence, we show that high-emission firms have lower price valuation ratios
than low-emission firms in the same country, especially in recent years. The price gap …

We study the impact of green investors on stock prices in a dynamic equilibrium model
where investors are green, passive or active. Green investors track an index that …

We study hand-collected data on firms' perceptions of their cost of capital. Firms with higher
perceived cost of capital earn higher returns on invested capital and invest less, suggesting …

This paper studies green investing in a quantitative asset pricing model with heterogeneous
investors calibrated using high-quality, representative survey data of German households …

We study how institutional investors that join climate-related investor initiatives decarbonize
their equity portfolios. Decarbonization can be achieved either by re-weighting portfolios …

We investigate the heterogeneity in investor demand for sustainable equity investing and
study its implications. We measure firm-level sustainability across three dimensions: third …