Climate Capitalists

Niels Joachim Gormsen, Kilian Huber, Sangmin Simon Oh

Firms' perceived cost of green capital has decreased since the rise of sustainable investing. Green and brown firms perceived their cost of capital to be the same before 2016, but after the post-2016 surge in sustainable investing, green firms perceived their cost of capital to be on average 1 percentage point lower. This difference has widened as sustainable investing has intensified. Within some of the largest energy and utility firms, managers have started applying a lower cost of capital to greener divisions. The changes in the perceived cost of green capital incentivize cross-firm and within-firm reallocation of capital toward greener investments

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Year of publication:	September 2024
Authors:	Gormsen, Niels ; Huber, Kilian ; Oh, Sangmin
Institutions:	National Bureau of Economic Research (issuing body)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Nachhaltige Kapitalanlage \| Sustainable investment \| Kapitalkosten \| Cost of capital \| Klimawandel \| Climate change \| Klimaschutz \| Climate protection \| Betriebliche Finanzwirtschaft \| Managerial finance

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Extent:	1 Online-Ressource illustrations (black and white)
Series:	NBER working paper series ; no. w32933
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Hardcopy version available to institutional subscribers
Other identifiers:	10.3386/w32933 [DOI]
Classification:	D24 - Production; Capital and Total Factor Productivity; Capacity ; E22 - Capital; Investment (including Inventories); Capacity ; G10 - General Financial Markets. General ; G12 - Asset Pricing ; G31 - Capital Budgeting; Investment Policy ; G32 - Financing Policy; Capital and Ownership Structure ; g41 ; Q50 - Environmental Economics. General ; Q51 - Valuation of Environmental Effects ; Q54 - Climate; Natural Disasters
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10015072875