@techreport{2f31c2d558ef4b23b929abf4bbd0b09e,
title = "International Trade in Brown Shares and Economic Development",
abstract = "Using global share ownership data from 2002 to 2021, we find that investors{\textquoteright} aggregate carbon sensitivity, i.e., their tendency to divest from more polluting firms, increases with per capita GDP, especially after the adoption of the Paris Agreement in 2015. As an implication, investors in higher-income countries are predicted to hold greener portfolios, which is borne out by the data. Especially investment managers, who invest on behalf of their clients, and investors with longer investment horizons contribute to the portfolio greening effect of economic development. We find that this effect is weaker for smaller firms and for firms that are included in the MSCI World index.",
keywords = "Carbon Intensity, divestment, Foreign Investment",
author = "Harald Benink and Harry Huizinga and Louis Raes and Lishu Zhang",
note = "CentER Discussion Paper Nr. 2024-002",
year = "2024",
month = jan,
day = "24",
language = "English",
volume = "2024-002",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",
}