| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5057818 | Economics Letters | 2017 | 5 Pages |
Abstract
â¢SRI can have a mixed effect on firms' incentives to remove negative externalities.â¢SRI screening strategies can incentivize the removal of negative externalities.â¢SRI trading strategies may under certain conditions disincentivize it.â¢The results explain why few firms cite SRI as a motive for bad externality removal.
Sustainable and responsible investing (SRI) may have a mixed effect on firms' incentives to remove negative externalities. Whereas SRI screening incentivizes the removal of externalities, SRI trading can disincentivize it when traders disagree on the externality removal's cash flow effects.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Dieter Vanwalleghem,