New Energy Series

Winter 2025 Talks

Wednesday, January 22nd, 12 - 1 PM
Sustainable Investing Strategies with Real Asset Trades
Felipe Verastegui-Grunewald, PhD Candidate, Columbia University

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Abstract: What strategy should sustainable investing funds adopt to reduce emissions without inducing firms to excessively engage in the reallocation of industrial pollution? In this talk, we address this question through a competitive equilibrium model. We show that the strategy choice critically determines the distribution of reallocation risk across the pool of productive assets. Our model predicts that complying with sustainable targets can affect downstream consumption markets, creating strategic complementarity or substitution in compliance decisions, depending on the mass of environmentally concerned investors. Financing frictions, then, lead to leakage trades: assets shift from compliant to non-compliant firms, with negative implications for clean technology adoption and welfare. Limiting only to conventional sustainable investment strategies - such as green screening - is suboptimal under worst-case scenarios of ex-post firm-investor matches in the presence of leakage buyers. Unconventional strategies, like reduction or investment screening, can effectively mitigate the reallocation of industrial pollution and induce a larger degree of clean technology adoption.

About Felipe Verastegui-Grunewald

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Felipe Verastegui-Grunewald

Felipe Verastegui-Grunewald is a third-year Ph.D. candidate in the Department of Industrial Engineering and Operations Research at Columbia University. His research centers on market design and optimization within power and energy systems, with a keen interest in financial markets. Currently, his work explores resource allocation, algorithmic pricing, and contract design under long-term climate risk, as well as financial intermediation amidst externalities. Felipe is also affiliated with the Center for Digital Finance and Technologies and was in the inaugural cohort of the Global Energy Fellows program at Columbia's Center on Global Energy Policy. Before joining Columbia, he held an adjunct faculty position at Pontificia Universidad Católica de Chile, served as a technology specialist in the Chilean Ministry of Energy, and co-designed and taught a course on Chilean Energy and Climate Policy at Stanford University. Felipe was awarded a Fulbright Scholarship and has collaborated closely with Independent System Operators (ISOs), governments, and trade associations, contributing to energy market design and the implementation of climate policy initiatives.

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Wednesday, February 19th, 12 - 1 PM
Laura Castro Diaz, Assistant Professor, School for the Environment, University of Massachusetts Boston

Info Coming Soon

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Wednesday, March 3, 12 - 1 PM
Megan Egler, Postdoctoral Fellow, Institute of Integrated Energy Systems, University of Victoria

Info Coming Soon

 

About the Series

New Energy: Conversations with Early-Career Energy Researchers is an online series featuring graduate, post-doctoral, and other early-career researchers sharing their discoveries and perspectives on energy-related topics. From policy to analysis to emerging technology, this series will give anyone interested in energy the opportunity to learn from the rising stars in the field. 

All events in this series take place via Zoom.