Sustainable Investing and Political Behavior (joint with F. Heeb, S. Ramelli and A. Vasileva)

Category: Finance Seminar
When: 02 July 2024
, 12:00
 - 13:15
Where: HoF E.01
Speaker: Julian Kölbel (University of St. Gallen)

Finance Seminar joint with LawFin Research Seminar




A major concern regarding sustainable investing is that it may crowd out political support for government interventions targeting negative externalities. We test the validity of this concern in a preregistered experiment shortly before a real referendum on a climate law with a representative sample of the Swiss population (N = 2,051). We find that the opportunity to invest in a climate conscious fund does not erode individuals’ support for climate regulation. Our experimental results are consistent with actual voting and investing behavior across Switzerland. We conclude that the spillover effects of sustainable investing on individual political behavior are limited.