TY  - UNPD
A1  - Inderst, Roman
A1  - Opp, Marcus M.
T1  - Socially optimal sustainability standards with non-consequentialist ("warm glow") investors
T2  - SAFE working paper ; No. 346
N2  - Agencies around the world are in the process of developing taxonomies and standards for sustainable (or ESG) investment products. A key assumption in our model is that of non-consequentialist private investors (households) who derive a "warm glow" decisional utility when purchasing an investment product that is labelled as sustainable. We ask when such labelling is socially beneficial even when the socialplanner can impose a minimum standard on investment and production. In a model of financial constraints (Holmström and Tirole 1997), which we close to include consumer surplus, we also determine the optimal labelling threshold and show how its stringency is affected by determinants such as the prevalence of warm-glow investor preferences, the presence of social network effects, or the relevance of financial constraints at the industry level.
T3  - SAFE working paper - 346 
KW  - sustainability
KW  - ESG
KW  - green financing
KW  - labelling
Y1  - 2022
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/64597
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-645973
UR  - https://ssrn.com/abstract=4065630
IS  - February 2022
PB  - SAFE
CY  - Frankfurt am Main
ER  -