TY  - GEN
T1  - Green preference, green investment
T2  - ADB Economics Working Paper Series
A1  - Gao, Zhenyu
A1  - Luo, Yan
A1  - Tian, Shu
A1  - Yang, Hao
LA  - English
UL  - https://tuklas.up.edu.ph/Record/UP-8027258850631495449
AB  - Based on Alibaba’s renowned “green” initiative, the Ant Forest program, we develop a novel measure to reveal an individual investor’s nonpecuniary green preference and link it to an individual’s investment actions. We present compelling evidence that supports nonfinancial incentives for investing in green mutual funds while divesting from “brown” funds. Concerns over climate physical and regulatory risks further reinforce this influence. Individuals’ green preferences do not lead to financial gains from trading. Moreover, we mitigate the endogeneity issue by employing the development of a local subway network as a source of variations in green preferences.
OP  - 42
KW  - Economics.
KW  - Finance sector development.
KW  - Financial markets and institutions.
ER  -