Technological Greenness and Long-run Performance

43 Pages Posted: 1 Dec 2023 Last revised: 26 Dec 2023

See all articles by Stefano Battiston

Stefano Battiston

University of Zurich - Department Finance; Ca Foscari University of Venice

Irene Monasterolo

Utrecht University

Maurizio Montone

Utrecht University

Date Written: December 24, 2023


Firms’ investments in green technology are crucial for investors’ alignment to the Net Zero target. However, it is still unclear whether firms that invest in green technologies are rewarded by the market, particularly in the long run. Using a science-based technological measure of greenness, we find that the adoption of sustainable technologies is associated with better future financial and operating performance. Firms with greener technologies do not just appeal to investors’ pro-social preferences but also represent better firms. The results are especially strong in countries characterized by higher financial development, and for firms with better climate-related disclosure.

Keywords: Technological greenness; Climate finance; Long-run returns; Operating performance; Disclosure

JEL Classification: G10, G12, G14, G15

Suggested Citation

Battiston, Stefano and Monasterolo, Irene and Montone, Maurizio, Technological Greenness and Long-run Performance (December 24, 2023). Available at SSRN: or

Stefano Battiston

University of Zurich - Department Finance ( email )

Plattenstrasse 32
Zürich, 8032

Ca Foscari University of Venice ( email )

Cannaregio 873
Venice, 30121

Irene Monasterolo

Utrecht University ( email )

Vredenburg 138
Utrecht, 3511 BG

Maurizio Montone (Contact Author)

Utrecht University ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC

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