A Breath of Change: Can Personal Exposures Drive Green Preferences?

59 Pages Posted: 4 Dec 2024

See all articles by Dmitry Chebotarev

Dmitry Chebotarev

Indiana University - Kelley School of Business - Department of Finance

Steffen Andersen

Copenhagen Business School - Department of Finance; CEPR

Fatima Zahra Filali Adib

Copenhagen Business School - Department of Finance

Kasper Meisner Nielsen

Copenhagen Business School - Department of Finance

Date Written: May 31, 2024

Abstract

Are investors' preferences for responsible investing affected by their idiosyncratic personal experiences? Using a comprehensive dataset with hospital visits and information on portfolio holdings by retail investors in Denmark, we show that when an investor's child is diagnosed with a respiratory disease, the investor decreases (increases) portfolio weights of ``brown" (``green”) stocks but does not alter their holdings of ESG funds. Consistent with parents attributing respiratory diseases to air pollution, we find no effects for non-respiratory diseases. The results are stronger for more severe diseases and are driven by parents who live with their children.

Suggested Citation

Chebotarev, Dmitry and Andersen, Steffen and Filali, Fatima Zahra and Nielsen, Kasper Meisner, A Breath of Change: Can Personal Exposures Drive Green Preferences? (May 31, 2024). Proceedings of the EUROFIDAI-ESSEC Paris December Finance Meeting 2024, Available at SSRN: https://ssrn.com/abstract=5043948 or http://dx.doi.org/10.2139/ssrn.5043948

Dmitry Chebotarev (Contact Author)

Indiana University - Kelley School of Business - Department of Finance ( email )

1309 E. 10th St.
Bloomington, IN 47405
United States

HOME PAGE: http://https://dchebotarev.com/

Steffen Andersen

Copenhagen Business School - Department of Finance ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

CEPR ( email )

London
United Kingdom

Fatima Zahra Filali

Copenhagen Business School - Department of Finance ( email )

Solbjerg Plads 3, SOL/A4.17
Copenhagen, Frederiksberg 2000
Denmark

Kasper Meisner Nielsen

Copenhagen Business School - Department of Finance ( email )

A4.17 Solbjerg Plads 3
Copenhagen, Frederiksberg 2000
Denmark

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