Counterproductive Sustainable Investing: The Impact Elasticity of Brown and Green Firms

We thank Nick Barberis, Ray Fisman, Caroline Flammer, Xavier Gabaix, Janet Gao, Stefano Giglio, Niels Gormsen, Ben Hebert, Andy Howard, Philipp Krüger, Matt Levine, Hao Liang, Lubos Pastor, Jeff Pontiff, Adriano Rampini, Andrei Shleifer, Eric So, David Solomon, Amir Sufi, Luke Taylor, Neng Wang, Ayako Yasuda, as well as seminar participants at Alix Partners, American University, Babson, Blackrock, Brandes Center, BYU, Dartmouth Tuck, Drexel, FRA, Federal Reserve Board, Five-Star Conference, Gerzensee ESSFM, Helsinki Finance Summit, KAIST, Kansas, McGraw Hill, NBER Asset Pricing, NBER Corporate Finance, NBER Environment and Energy, New York Federal Reserve, PRI in Person, Q-group, SITE Climate Finance, SITE Politically Feasible Environmental and Energy Policy, Texas A&M, Tulane, TUM Sustainable Finance Workshop, Yale Finance, and Yale Investment Office. We thank Yiyuan Wang and Qizhi Su for excellent research assistance. This research was funded in part by the International Center for Finance at Yale SOM. The authors have no conflicts of interest to disclose. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.