Arbeitspapier

Responsible investment and responsible consumption

To reduce a negative externality, socially responsible households can invest responsibly (SRI), consume responsibly (SRC), or do both. Which is better? In a closed microeconomic model with intertwined product and capital markets, we analyze how responsible households should use SRI and SRC to maximize their impact. Both strategies reduce the externality as long as investors are risk-averse and the products have no perfect substitutes. Responsible households gain the highest impact when using SRC in equal proportion to SRI. A mere focus on SRC is never efficient. SRI plays a role in any green strategy. The financial performance of green investments is determined by the responsible households' mix between SRI and SRC.

Sprache
Englisch

Erschienen in
Series: ECONtribute Discussion Paper ; No. 134

Klassifikation
Wirtschaft
Collaborative Consumption‡
Corporate Finance and Governance: General
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Externalities
Altruism; Philanthropy; Intergenerational Transfers
Corporate Culture; Diversity; Social Responsibility
Thema
Socially responsible investment (SRI)
ethical investment
socially responsible consumption (SRC)
sustainable investment
sustainable consumption
green investment
divestment
ESG
SPI

Ereignis
Geistige Schöpfung
(wer)
Hakenes, Hendrik
Schliephake, Eva
Ereignis
Veröffentlichung
(wer)
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI)
(wo)
Bonn and Cologne
(wann)
2021

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hakenes, Hendrik
  • Schliephake, Eva
  • University of Bonn and University of Cologne, Reinhard Selten Institute (RSI)

Entstanden

  • 2021

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