A Market for Environmentally Responsible Investment? Identifying Obstacles and Enablers of Commodification of Environmental Risks in the South African Investment Industry
AbstractThis paper analyzes the views of South African investment organizations on the likelihood of commodification of environmental risks in their investment decision processes. It is based on an empirical qualitative survey of 22 investment organizations, which are signatories to the United Nations’ Principles for Responsible Investment. We describe a range of issues, identified by the investment players interviewed, that are likely to prevent or accelerate the internalization of environmental risks in the South African investment industry. The chance that broader commodification of the South African investment industry will occur—beyond the growing but still small ranks of responsible investors—seems to be linked to realization of an adequate political framing. This means legislating standardized environmental disclosure by corporations and a long-term commitment by institutional investors to responsible investment philosophies. The tension between social developmental goals and environmental goals is seen as a major political obstacle at the national level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-11-01-efd.
Date of creation: 31 Jan 2011
Date of revision:
commodification; political framing; calculative framing; conventions; environmental risks; responsible investment;
Find related papers by JEL classification:
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-01-03 (Africa)
- NEP-ALL-2012-01-03 (All new papers)
- NEP-ENV-2012-01-03 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Xavier Basurto & Elinor Ostrom, 2009. "Beyond the tragedy of the Commons," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(1), pages 35-60.
- Ostrom, Elinor, 2009.
"A polycentric approach for coping with climate change,"
Policy Research Working Paper Series
5095, The World Bank.
- Elinor Ostrom, 2014. "A Polycentric Approach For Coping With Climate Change," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 71-108, May.
- Elinor Ostrom, 2008. "A Polycentric Approach For Coping With Climate Change," CEMA Working Papers 578, China Economics and Management Academy, Central University of Finance and Economics.
- Donald MacKenzie, 2006. "An Engine, Not a Camera: How Financial Models Shape Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262134608, January.
- Yamina Tadjeddine & Sébastien Galanti & Isabelle Bilon & Catherine Aaron, 2005. "Les styles de gestion de portefeuille existent-ils ?," Revue d'Économie Financière, Programme National Persée, vol. 81(4), pages 171-188.
- Giamporcaro, Stephanie & Pretorius, Lise & Visser, Martine, 2010. "Responsible Investment: A Vehicle for Environmentally Sustainable Economic Growth in South Africa," Discussion Papers dp-10-17-efd, Resources For the Future.
- Boyer, Robert & Orlean, Andre, 1992. "How Do Conventions Evolve?," Journal of Evolutionary Economics, Springer, vol. 2(3), pages 165-77, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.