arbiter
JournalsAccount

Responsible Investment and Responsible Consumption

Hendrik Hakenes & Eva Schliephake

Management Science2026https://doi.org/10.1287/mnsc.2023.03042preprint
FT50UTD24AJG 4*ABDC A*
Weight
0.49

Abstract

Should households focus on responsible investment (SRI) or responsible consumption (SRC) to mitigate externalities? Using a general equilibrium model linking product and capital markets, we show that neither strategy is efficient on its own—each shifts prices and triggers offsetting market responses. Combining SRI and SRC neutralizes these effects and maximizes impact. This complementarity holds across diverse settings, even when SRI alone would have negligible impact. The effectiveness of green finance, therefore, critically depends on households acting as both investors and consumers. This paper was accepted by Bo Becker, finance. Funding: This work was supported by Germany’s Excellence Strategy [Grant EXC 2126/1-39083886], Deutsche Forschungsgemeinschaft [Grant CRC TR224 project C03], and the Portuguese Foundation of Science and Technology [Grant PTDC/EGE-ECO/6041/2020].

6 citations

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1287/mnsc.2023.03042

Or copy a formatted citation

@article{hendrik2026,
  title        = {{Responsible Investment and Responsible Consumption}},
  author       = {Hendrik Hakenes & Eva Schliephake},
  journal      = {Management Science},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1287/mnsc.2023.03042},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Responsible Investment and Responsible Consumption

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.49

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

F · citation impact0.44 × 0.4 = 0.18
M · momentum0.60 × 0.15 = 0.09
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.