Talking About the Weather: Availability, Affect and the Demand for Green Investments

41 Pages Posted: 27 Nov 2019 Last revised: 31 Mar 2020

See all articles by Anders Anderson

Anders Anderson

Swedish House of Finance

David T. Robinson

Fuqua School of Business, Duke University; National Bureau of Economic Research (NBER); Duke Innovation & Entrepreneurship Initiative

Date Written: November 20, 2019

Abstract

We survey investors and establish a link between adverse weather events, beliefs about future climate calamities, and portfolio rebalancing decisions. In 2014, a number of extreme weather-related disasters occurred throughout Northern Europe. Exposure to these disasters caused some investors to believe that extreme future climate-related disasters were highly likely, a view far outside the generally accepted scientific consensus at the time. After the disasters, but not before, these investors rebalanced their retirement portfolios to concentrate in mutual funds that tout environmental sustainability. They also report that they recycle more than their neighbors, are willing to pay extra for green products, think green investments outperform, and are willing to pay higher fees for green mutual funds.

Keywords: Availability, ESG, Sustainability, Retirement Savings

JEL Classification: G11, G28

Suggested Citation

Anderson, Anders and Robinson, David T., Talking About the Weather: Availability, Affect and the Demand for Green Investments (November 20, 2019). Swedish House of Finance Research Paper No. 19-14, Available at SSRN: https://ssrn.com/abstract=3490730 or http://dx.doi.org/10.2139/ssrn.3490730

Anders Anderson (Contact Author)

Swedish House of Finance ( email )

Drottninggatan 98
111 60 Stockholm
Sweden

David T. Robinson

Fuqua School of Business, Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0120
United States
919-660-8023 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

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