Seminar Series

2024 - 2025

Speaker: Olivier-David Zerbib (ENSAE-CREST).

Title: “Can Investors Curb Greenwashing?” ”.

joint with Fanny Cartellier and Peter Tankov (both Institut Polytechnique de Paris) 

Date: Thursday, 9 January at 12h00 (Paris Time).

Abstract: We show how investors with pro-environmental preferences and who penalize revelations of past environmental controversies impact corporate greenwashing practices. Through a dynamic equilibrium model with information asymmetry, we characterize firms' optimal environmental communication, emissions reduction, and greenwashing policies, and we explain the forces driving them. Notably, under a condition that we explicitly characterize, companies greenwash to inflate their environmental score above their fundamental environmental value, with an effort and impact increasing with investors’ pro-environmental preferences. However, investment decisions that penalize greenwashing, policies increasing transparency, and environment-related technological innovation contribute to mitigating corporate greenwashing. We provide empirical support for our results. 

Here is a link to the speaker’s and the FEELab website:

https://sites.google.com/view/odzerbib

https://sites.google.com/view/feelabtbs/

You are cordially invited to participate in the following seminar of the FEELab, which will take place in Room 727-730, Sebastopol building .

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr or Cam Ly TRAN cam-ly.tran@tbs-education.fr