Event Details

Finance Seminar presented by Philipp Krueger, University of Geneva. Paper title: The Green Transition: Evidence from Corporate Green Revenues.

Philipp Krueger - Faculté d'économie et de management - UNIGE

Abstract

Using a novel measure of a firm’s green revenues, this paper sizes up the green economy. We shed light on the factors driving global public companies’ expansion of business activities in support of the green transition towards a low-carbon and more environmentally sustainable economy. Our analysis shows that the green economy grew at an accelerated pace after the Paris Agreement. Both regulatory initiatives and innovative US firms converting green patents into actual revenues from green products and services have led to this accelerated growth. We also document that a stronger presence of institutional investors prior to the Paris Agreement is associated with higher green revenues afterwards. Finally, we examine the stock returns of firms with high green revenues and find only modest evidence of a green alpha which seems to be concentrated in US stocks in the post-Paris period.