Collegium Institute's Philosophy of Finance Fellowship is a series of seminars that draw together Penn students to explore the work of both scholars and practitioners and address the fundamental questions raised by the practice of finance, focusing on a different theme each academic year. You can find more information about the Spring 2022 Fellowship below, and about the Philosophy of Finance initiative more generally here.

Spring 2022 Philosophy of Finance Fellowship: Markets and the Environment

Can free markets solve environmental problems, or do they only cause them?  How can property rights and the profit motive be used to address climate change?  Does impact investing have a positive effect on the environment?  For this academic year, the Philosophy of Finance Fellowship will be looking at these questions in an attempt to understand if finance and markets can be part of the solution to the problem of climate change.

In the fall semester, we examined markets made by government regulation as well as the public stock markets. We covered some theoretical background and then examined emissions pricing, property rights, the profit motive, and impact investing. We concluded the Fall term with a look at an Austrian perspective on environmental economics, touching on the major themes of the semester. To read more about the Fall 2021 Philosophy of Finance Fellowship, click here.

This spring, continuing to explore the topic of markets and the environment, we will examine public markets again, and then turn to private markets, especially cleantech venture capital, to see if innovation and the profit motive can be used effectively to decarbonize the atmosphere.

Discussions will be facilitated by Dr. Michael T. Kane, who is an historian of philosophy, a lecturer in Penn's Economics Department, and a professional investor, having founded and managed Kestrel Investments for over 15 years. The Fellowship will also feature outside guest speakers from the world of cleantech venture and from ESG investing.

Schedule and Readings

The seminar will meet in person over the course of five Fridays during the semester from 12pm-1pm. Lunch will be provided. Readings will be made available on this page.

January 21 — Shareholder Activism on Climate

• Guest speaker: Dr. Matthew B. O’Brien, O'Brien Greene & Co. Investment Advisors

• Readings

  • Caroline Flammer et al., “Shareholder activism and firms’ voluntary disclosure of climate change risks”

  • John C. Coffee, “The Coming Shift in Shareholder Activism: From 'Firm-Specific' to 'Systematic Risk' Proxy Campaigns (and How to Enable Them)”

February 4 — Energy Transition:  The Challenges and Opportunities of Getting to Net Zero

• Readings

  • Jason Bordoff, “Why Shaking Up Big Oil Could Be a Pyrrhic Victory”

  • International Energy Agency Net Zero Report: Executive Summary

February 25 — How the Banking Sector Can Finance Our Energy Transition

• Guest speaker: Christina P. Skinner

• Reading: Sarah E. Light and Christina P. Skinner, “Banks and Climate Governance” (Excerpts)

March 18 — Implementing an ESG Program in a Public Company

• Guest speaker: Jeff Johnson, Managing Director, Tamasek

• Background reading: Listed Companies' Emissions

April 8 — Can Cleantech Save the Planet?  

• Guest speaker: Shashank Samala, CEO, Heirloom (a start-up carbon capture business)

• Readings

  • Wright's Law Explained; Application to Batteries

  • Wright’s Law in Solar

  • Wright’s law for Automotive: Wright’s law predicted 109 years of automotive costs