The ESG Initiative at the Wharton School


Wharton Professors Luke Taylor and Robert Stambaugh Win Kellogg’s Moskowitz Prize

Outlet: Wharton
For 27 years the Moskowitz Prize has identified and recognized research results that can influence global practice of responsible finance.

From a field of over 160 submitted papers, Dissecting Green Returns was selected as the winner of the 2022 Moskowitz Prize at Northwestern University. The award, which recognizes high-impact research in sustainable finance, was presented to Lubos Pastor (University of Chicago Booth School of Business), Robert Stambaugh (The Wharton School), and Lucian Taylor (The Wharton School).

The Moskowitz Prize, now in its 27th year, is awarded annually to a research paper that demonstrates both impeccable empirical methods and strong potential to influence real-world business and investment practices related to sustainability.

“The study identifies a green factor that has impacted asset prices and portfolio returns in recent years,” says Lloyd Kurtz, founder of the Moskowitz Prize and again one of the judges this year. “They show that superior returns of green stocks were at least partly due to a change in investor preferences. But outperformance likely won’t continue over the long term. That’s good for green companies because it gives them a lower cost of capital—a big advantage in a competitive economy. So it’s an important paper for showing that sustainability is now priced into markets and past strong returns don’t guarantee future ones.”