Alex, Fabian (2026) On the non-neutrality of socially responsible investing in the presence of a greenium. NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE, 82: 102567. ISSN 1062-9408, 1879-0860
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The neutrality of SRI in the AD-GE model by Arnold (2023) ceases to hold once the law of one price is violated for an asset that sufficiently many individuals (a single one may suffice) are not indifferent towards. The introduction of a green bond priced at a premium leads to an illusory gain, that is, a pure utility gain accompanied by a reduction of consumption, of green investors. Their financial losses are allocated to those that were sufficiently un-green to not buy too many green bonds themselves. To profit financially this way, an individual needs to start out as (partial) owner of a firm that "turns out" to be a green bond issuer. Impact investing still does not generate environmental impact in this model.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Socially responsible investing; Complete markets; Asset pricing; Arrow-Debreu; Green bond; Greenium |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Theoretische Volkswirtschaft (Prof. Dr. Lutz Arnold) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 24 Jun 2026 06:46 |
| Last Modified: | 24 Jun 2026 06:46 |
| URI: | https://pred.uni-regensburg.de/id/eprint/65846 |
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