Keywords

ESG, sustainable investing, difference-in-differences, pension finance, climate finance

Abstract

This study examines the impact of Texas’ Environmental, Social, and Governance (ESG) investment restrictions using difference-in-differences, quantile regression, and synthetic control methodologies. Our analysis spans economic indicators, environmental outcomes, and financial performance metrics. While we find modest effects across multiple dimensions, including a negative but statistically insignificant impact on overall economic activity, the results suggest heterogeneous impacts across outcome distributions. These findings contribute to the ongoing debate about the economic and environmental implications of ESG-related policies.