Events

Professor Philipp Krüger
Professor of Finance
University of Geneva

We introduce a global firm-level measure of revenues from environmentally beneficial products and services that is not spanned by emissions or conventional sustainability metrics. Green revenues accelerate after the Paris Agreement, particularly among firms whose pre-existing green product patents reflect technological capabilities that can be commercialized. This relation is strongest in the United States, where the relative valuation of green firms increases most after Paris, consistent with market-based commercialization. In contrast, European green-revenue growth is associated with environmental regulation rather than valuation gains. We find modest evidence of green alpha: positive abnormal returns emerge post Paris among firms with high green-revenue shares and are concentrated among U.S. firms with pre-Paris green technological capabilities.