Work in progress
Green and brown returns in a production economy, joint with Thore Kockerols and Yves Schueler, first draft available on request.
Abstract:
Does it pay to invest in green companies? In countries where a market for carbon is functioning, such as those within the European Union, our findings suggest that it should be beneficial. Using a sample of green and brown European firms, we initially demonstrate that green companies have outperformed brown ones in recent times. Subsequently, we develop a production economy model in which brown firms acquire permits to emit carbon into the atmosphere. We find that the presence of a well-functioning carbon market could account for the green equity premium observed in our data. Incorporating a preference for green financial assets is also unlikely to overturn our results.
Green asset pricing, joint with Ghassane Benmir and Gauthier Vermandel, new version in progress.
R&R JF
2021 EFA best paper prize in responsible finance
The trade-off between public health and the economy in the early stage of the COVID-19 pandemic,
Leveraged property cycles