%0 Journal Article
%T Financial Markets and the Transition to a Low
%A Alfred Marcus
%A Celine Louche
%A Patricia Crifo
%A Timo Busch
%J Organization & Environment
%@ 1552-7417
%D 2019
%R 10.1177/1086026619831516
%X Financial markets play a major role in contributing to the transition to a low-carbon economy. Although many initiatives and developments are taking place, this is just the beginning. In this article, we argue for a theory of change¡ªa theory rooted in logics that will help financial markets play a key role in the transition to a low-carbon economy. We argue that the current dominant logics in finance¡ªshort-termism, predictability of the future based on ex-post data, price efficiency, and risk-adjusted returns¡ªimpede the effective integration of climate considerations in financial markets. We suggest four alternative logics that can enable and foster a change toward the low-carbon economy: long-termism, systems interconnectedness, carbon price dynamics, and active ownership
%K financial markets
%K climate change
%K low-carbon economy
%K theory of change
%U https://journals.sagepub.com/doi/full/10.1177/1086026619831516