Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298168 
Year of Publication: 
2024
Series/Report no.: 
ADB Economics Working Paper Series No. 722
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
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.
Subjects: 
nonpecuniary preference
revealed preference
sustainable finance
FinTech
JEL: 
G11
G50
Q55
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
638.7 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.