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Sustainable Investing

Ľuboš Pástor et al.

Annual Review of Financial Economics2025https://doi.org/10.1146/annurev-financial-113023-111705article
AJG 3ABDC B
Weight
0.37

Abstract

We review the literature on sustainable investing, focusing on financial effects. First, we examine the effects of investor tastes on portfolio tilts and asset prices in a simple equilibrium setting. We establish novel connections, including a direct relation between the green portfolio tilt and the greenium. We also relate our framework to prior modeling of divestment. Finally, we review evidence related to the main concepts from our theoretical analysis, including the greenium, green tilts, climate risk, and investor tastes.

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https://doi.org/https://doi.org/10.1146/annurev-financial-113023-111705

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@article{ľuboš2025,
  title        = {{Sustainable Investing}},
  author       = {Ľuboš Pástor et al.},
  journal      = {Annual Review of Financial Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1146/annurev-financial-113023-111705},
}

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Sustainable Investing

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.