This paper analyses Kantian cooperation of sustainability investments in a two-stage game. Firms’ behavior, Kantian cooperation versus competition, is independent at each stage. Our findings indicate that Kantian cooperation in sustainability investment results in lower sustainability levels,...

Agencies around the world are in the process of developing taxonomies and standards for sustainable (or ESG) investment products. A key assumption in our model is that of non-consequentialist private investors (households) who derive a "warm glow" decisional utility when purchasing an investment...