Public value of environmental investments: A conceptual outlook on the management of normatively determined risks
Publikation: Beiträge in Sammelwerken › Kapitel › begutachtet
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Handbook of Environmental and Sustainable Finance. Hrsg. / Vikash Ramiah; Greg N. Gregoriou. Amsterdam: Elsevier B.V., 2016. S. 131-145.
Publikation: Beiträge in Sammelwerken › Kapitel › begutachtet
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RIS
TY - CHAP
T1 - Public value of environmental investments
T2 - A conceptual outlook on the management of normatively determined risks
AU - von Müller, Camillo-Georg
AU - Brieger, Steven A.
PY - 2016
Y1 - 2016
N2 - In this chapter we assume the perspective of environmentally conscious investors. We hold that the latter are interested in both the objective determinants and the subjective factors that determine if and to what extent owners of an externalities producing technology incorporate these externalities into their production functions. We use public value theory as concept that explains the normatively determined inclusion of externalities into a firm's production function as a result of changing consumer preferences and dynamic legislative environments. We propose that environmentally conscious investing can be compared to buying a put option on public value risks and describe the mechanics of this option.
AB - In this chapter we assume the perspective of environmentally conscious investors. We hold that the latter are interested in both the objective determinants and the subjective factors that determine if and to what extent owners of an externalities producing technology incorporate these externalities into their production functions. We use public value theory as concept that explains the normatively determined inclusion of externalities into a firm's production function as a result of changing consumer preferences and dynamic legislative environments. We propose that environmentally conscious investing can be compared to buying a put option on public value risks and describe the mechanics of this option.
KW - Sustainability Science
KW - Management studies
KW - Green investing
KW - Public value
KW - Put options
KW - Reputational risks
KW - Social costs
KW - Value dynamics
UR - http://www.scopus.com/inward/record.url?scp=84966783719&partnerID=8YFLogxK
U2 - 10.1016/B978-0-12-803615-0.00007-8
DO - 10.1016/B978-0-12-803615-0.00007-8
M3 - Chapter
SN - 978-0-12-803615-0
SP - 131
EP - 145
BT - Handbook of Environmental and Sustainable Finance
A2 - Ramiah, Vikash
A2 - Gregoriou, Greg N.
PB - Elsevier B.V.
CY - Amsterdam
ER -