Bank divestment and green innovation

Abstract

bank divestment and green innovation zhen ye, university of maryland may 2023 motivation: growing pressure for banks to divest notable examples of banks that have pledged to decrease financing of firms with high carbon emissions: • bnp paribas • hsbc • ing • pro-divestment argument: starve polluting firms to lower their production and therefore carbon emission 1 / 16 motivation: green innovation by brown firms is important • international energy agency: half of the projected co2 reductions that will be required to achieve net zero by 2050 will depend on technologies that are not commercially viable • cohen, gurun, and nguyen (2022): firms in high-carbon industries, such as the energy sector, are key innovators of green technologies 2 / 16 • how does bank divestment affect the characteristics of green • such as stock market value, citation, relevance to mitigating climate change patents? impact research questions • how does bank divestment affect green patent filings? • positive if incentives to increase consumer demand and bank finance dominate; • negative if the increase in the cost of producing green patents dominates 3 / 16 research questions • how does bank divestment affect green patent filings? • positive if incentives to increase consumer demand and bank finance dominate; • negative if the increase in the cost of producing green patents dominates • how does bank divestment affect the characteristics of green patents? • such as stock market value, citation, relevance …

Source: pdf_first_chars