PhD defence Bin Dong

Keywords:  Sustainability Preferences, Socially Responsible Investment, Belief Elicitation, Survey Experiment

"Sustainability Preferences"

This dissertation investigates why some individuals choose to invest in sustainable financial products while others do not. Instead of assuming that such choices are guided mainly by moral considerations, the research shows that people’s expectations about financial performance play a key role. Through a series of experimental and empirical studies, the dissertation finds that investors often understate how well sustainable investments might perform. When they are asked about their expectations in more careful and engaging ways, they tend to believe that sustainable funds will do better and they are more willing to invest in them.

The research also reveals that many investors prefer moderate forms of sustainable investing—such as excluding a small number of controversial companies—because these options feel more secure and maintain broad diversification. Finally, the dissertation shows that sustainable investments clearly outperformed the market only during specific periods, such as the COVID-19 crisis, indicating that their benefits depend on the broader economic environment. Overall, the thesis highlights how understanding sustainability preferences can help guide more effective and informed investment decisions.

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