Nice but cautious guys: The cost of responsible investing in the bond markets
AbstractThe aim of this paper is to measure the cost of investing responsibly for different risk aversion levels by taking the example of green sovereign bond portfolios. We show that for developed markets, the cost of being a nice guy is lower if you are cautious (i.e. a higher level of risk aversion) while this is the contrary for emerging markets. It implies that managers of Socially Responsible Investment (SRI) funds should gauge investor’s risk aversion prior to evaluating the “SRI cost”. The SRI cost is zero in some cases.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 09-034.RS.
Length: 12 p.
Date of creation: 2009
Date of revision:
Publication status: Published by:
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More information through EDIRC
Portfolio Selection; Socially Responsible Investment; Risk Aversion; Environmental Performance Index; Sovereign Bonds.;
Find related papers by JEL classification:
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-19 (All new papers)
- NEP-ENE-2009-09-19 (Energy Economics)
- NEP-ENV-2009-09-19 (Environmental Economics)
- NEP-UPT-2009-09-19 (Utility Models & Prospect Theory)
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.:
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- Bastien Drut, 2010.
"Social responsibility and mean-variance portfolio selection,"
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- Bastien Drut, 2010. "Social responsibility and mean-variance portfolio selection," EconomiX Working Papers 2010-3, University of Paris West - Nanterre la Défense, EconomiX.
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