The impact of green investors on stock prices

Tom Gosling talks to Dimitri Vayanos about the impact the green investors can have on stock prices by divesting from dirty firms and investing in green firms. There's a debate in the academic literature about whether the impacts are negligible or substantial. Using a theoretical model, Dimitri and his co-authors identify a significant but modest impact on cost of capital, measured in a few tens of basis points and share price impacts over a decade of around 10%. So noticeable, but not transformative in the context of the green transition.  Host: ⁠⁠Tom Gosling⁠Contributor: Dimitri VayanosRead Dimitri Vayanos's paper, The Impact of Green Investors on Stock Prices, co-authored with Gong Cheng, Eric Jondeau and Benoît Mojon. To learn more about the Initiative in Sustainable Finance (ISF), visit ISF's website (⁠⁠https://www.fmg.ac.uk/isf⁠⁠).