Public value of environmental investments: A conceptual outlook on the management of normatively determined risks

Research output: Contributions to collected editions/worksChapterpeer-review

Authors

  • Camillo-Georg von Müller
  • Steven A. Brieger

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.

Original languageEnglish
Title of host publicationHandbook of Environmental and Sustainable Finance
EditorsVikash Ramiah, Greg N. Gregoriou
Number of pages15
Place of PublicationAmsterdam
PublisherElsevier B.V.
Publication date2016
Pages131-145
ISBN (print)978-0-12-803615-0
ISBN (electronic)978-0-12-803646-4
DOIs
Publication statusPublished - 2016