Sustainable Investing and Political Behavior
Type
working paper
Date Issued
2023-06-15
Author(s)
Abstract
A first-order concern regarding sustainable finance is that it may crowd out individual support for more effective, policy-driven approaches to address societal challenges. We test the validity of this concern in a pre-registered experiment in the context of a real referendum on a climate law with a representative sample of the Swiss population (N=2,051). We find that the opportunity to invest in a climate-conscious fund does not erode individuals’ support for climate regulation. While sustainable finance resembles a placebo in the sense that participants seem to overestimate its impact, it is not a dangerous placebo that crowds out political engagement.
Language
English (United States)
Keywords
D14
H42
G18
P16 Behavioral Finance
Climate Change
ESG
Externalities
Sustainable Finance
Political Economy
Voting Behavior
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HeebKölbelRamelliVasileva_IsSustainableFinanceDangerousPlacebo_20June2023.pdf
Size
1.85 MB
Format
Adobe PDF
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