The E-axes Forum on Climate Change, Macroeconomics, and Finance

Deeksha Gupta

“Dynamic Green Disclosure Requirements”

Young Scholars' Webinar on Climate Finance and Economics

From the Abstract: This paper studies the optimal design of green disclosure requirements to support firms’ transition to greener technologies. In a dynamic model with socially responsible investors, we model green transition as a multi-step process. Our analysis establishes an important link between the design of green disclosure requirements and the underlying characteristics of the technologies driving the green transition. We show that government-mandated “greenwashing” which entails deliberately obscuring firms’ actual greenness, can create mis-valuation subsidies that help overcome early transition bottlenecks. Dynamic green disclosure requirements that become more stringent over time can further incentivize transition. Stricter requirements in the future can enhance the effectiveness of lax requirements in early periods and vice versa. Our results can be applied to recent initiatives to establish mandatory green disclosure requirements.

Moderator:

Diego Kaenzig
Assistant Professor of Economics, Northwestern University

Organizing Committee

Michael Barnett, Arizona State University - W. P. Carey School of Business
Diego Kaenzig, Northwestern University
Alissa Kleinnijenhuis, Cornell SC Johnson College of Business at Cornell University
Parinitha Sastry, Columbia Business School - Columbia University
Ishita Sen, Harvard Business School - Harvard University
Conor Walsh, Columbia Business School - Columbia University

Deeksha Gupta

Deeksha Gupta is an Assistant Professor of Finance at the Carey Business School at Johns Hopkins. Prior to this, she was at the Tepper School of Business at Carnegie Mellon University. She also serves as an Associate Editor at the Review of Finance. Deeksha’s main research interests lie in socially responsible investing, digital currencies, housing markets and financial fragility. She received her PhD from the Wharton School and has a master’s degree in financial economics from Oxford University.

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Dynamic Green Disclosure Requirements

Dynamic Green Disclosure Requirements Slide Presentation

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