Do Financial Advisors Charge Sustainable Investors a Premium?

149 Pages Posted: 19 Jul 2021 Last revised: 7 Dec 2022

See all articles by Marten Laudi

Marten Laudi

Maastricht University

Paul Smeets

University of Amsterdam

Utz Weitzel

VU University Amsterdam

Multiple version iconThere are 2 versions of this paper

Date Written: December 2022


Regulators have voiced concerns about price discrimination against sustainable investors, but empirical evidence is lacking. We conduct two lab-in-the-field experiments with 415 US and European professional financial advisors. We find that advisors charge sustainable investors a premium compared to conventional investors. Our experiment rules out effort, skill, and cost differences as drivers of this premium. Advisors exert equal or even less effort for sustainable investors, in terms of time spent and information considered. Importantly, advisors do not charge a premium when sustainable investors signal high financial literacy. Financial regulators evaluate our results and provide policy implications.

Keywords: Experimental Finance, Financial Advice, Sustainable Investing, Financial Literacy

JEL Classification: C93, G11

Suggested Citation

Laudi, Marten and Smeets, Paul and Weitzel, Utz, Do Financial Advisors Charge Sustainable Investors a Premium? (December 2022). Available at SSRN: or

Marten Laudi

Maastricht University ( email )

P.O. Box 616
Maastricht, Limburg 6200MD

Paul Smeets (Contact Author)

University of Amsterdam ( email )

Plantage Muidergracht 12
Amsterdam, 1018TV

Utz Weitzel

VU University Amsterdam ( email )

De Boelelaan 1105

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