Abstract
We assess how investors' willingness-to-pay (WTP) for sustainable investments responds to the impact of those investments, using a framed field experiment. Although investors have a substantial WTP for sustainable investments, they do not pay more for investments with more impact. This also holds for dedicated impact investors. When investors compare several sustainable investments, their WTP increases with impact, but depends strongly on the choice set. Investors experience positive emotions when choosing a sustainable investment, irrespective of the investment’s impact. These findings suggest that the WTP for sustainable investments is driven by warm glow and not by deliberate evaluations of impact.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.