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dc.contributor.authorTrinks, Arjan
dc.contributor.authorScholtens, Bert
dc.contributor.authorMulder, Machiel
dc.contributor.authorDam, Lammertjan
dc.identifier.citationTrinks , A , Scholtens , B , Mulder , M & Dam , L 2018 , ' Fossil fuel divestment and portfolio performance ' , Ecological Economics , vol. 146 , pp. 740-748 .
dc.identifier.otherPURE: 252009649
dc.identifier.otherPURE UUID: 22004d7f-fc57-469b-af14-bfaace401db7
dc.identifier.otherScopus: 85044852941
dc.identifier.otherWOS: 000425202700065
dc.identifier.otherORCID: /0000-0001-5774-5191/work/69835012
dc.description.abstractFossil fuel divestment campaigns urge investors to sell their stakes in companies that supply coal, oil, or gas. However, avoiding investments in such companies might impose a financial cost on the investor because of foregone potentially profitable investments and reduced opportunities for portfolio diversification. We compare financial performance of investment portfolios with and without fossil fuel companies over the period 1927-2016. Contrary to theoretical expectations, we find that fossil fuel divestment does not seem to impair portfolio performance. These findings can be explained by the fact that, so far, fossil fuel company stocks do not outperform other stocks on a risk-adjusted basis and provide relatively limited diversification benefits. A more pronounced performance impact of divestment can be observed over short time frames and when applied to less diversified market indices.
dc.relation.ispartofEcological Economicsen
dc.rightsCopyright © 2017, Elsevier B.V. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at
dc.subjectFossil fuel divestmenten
dc.subjectSocially responsible investingen
dc.subjectPortfolio Performanceen
dc.subjectRisk-adjusted returnsen
dc.subjectMarket capitalizationen
dc.subjectHB Economic Theoryen
dc.subjectHG Financeen
dc.titleFossil fuel divestment and portfolio performanceen
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews.School of Managementen
dc.contributor.institutionUniversity of St Andrews.Centre for Responsible Banking and Financeen
dc.description.statusPeer revieweden

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