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The allocation of capital to achieve environmental sustainability

Lead Research Organisation: LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE
Department Name: Economics

Abstract

My research explores whether our current pricing environment for goods and services is incorrect and is causing environmental damage. To do this, I will focus on the financial system as the allocator of capital for sustainable firms to exist. The stock market is a good proxy for prices because it is considered a complete market with sufficient amounts of information incorporated into the price of equitites.

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