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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Do Investors Care about Impact?
Organization Unit
  • Florian Heeb
  • Julian Kölbel
  • Falko Paetzold
  • Stefan Zeisberger
Item Subtype Original Work
Refereed Yes
Status Published electronically before print/final form (Epub ahead of print)
  • English
Journal Title The Review of Financial Studies
Geographical Reach international
Volume forthcoming
Page Range -
Date 2023
Abstract Text We assess how investors’ willingness-to-pay (WTP) for sustainable investments responds to the social impact of those investments, using a framed field experiment. While investors have a substantial WTP for sustainable investments, they do not pay significantly more for more impact. This also holds for dedicated impact investors. When investors compare several sustainable investments, their WTP responds to relative, but not to absolute, levels of impact. Regardless of investments' impact, investors experience positive emotions when choosing sustainable investments. Our findings suggest that the WTP for sustainable investments is primarily driven by an emotional, rather than a calculative, valuation of impact.
Free access at Official URL
Official URL
Digital Object Identifier 10.1093/rfs/hhac066
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