4min chapter

VoxTalks Economics cover image

S6 Ep8: Applying economics (not gut feel) to ESG

VoxTalks Economics

CHAPTER

Is the General Equilibrium a Good Idea for Individual Investors?

An organization in the UK called Make My Money Matter encourages individual investors to ensure their pensions are invested in companies that have a positive impact. But they claim making your pension greener is 21 times more powerful at cutting carbon than giving up flying, going veggie or changing your electricity supply. This is a general equilibrium argument though, Alex. So does this matter to individual investors who are focusing on the achievement of these metrics for one firm or one group of firms that they're investing in? I would say that the general equilibrium result is also important for even individual investors.

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