---
title: ESG Mania and Trading
url: https://www.ml-quant.com/papers/ssrn/5278151/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5278151
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5278151
featured: 2025-06-04
citations: unknown
topic: Trading, Microstructure & Execution
---


# ESG Mania and Trading

The study explores the motivations and economic outcomes of institutional investors flocking to the ESG stock market, uncovering evidence of impact-washing rather than impact-chasing.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5278151
- Identifier: SSRN 5278151
- Released: 2025-06-01
- First featured: Quant Letter No. 100 (2025-06-04): https://www.ml-quant.com/issues/2025-06-04/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution

## Related

- [Romania's Roadmap to a Greener Financial System: An analysis of Environmental, Social and Governance Reporting on the Bucharest Exchange Trading Index](https://www.ml-quant.com/papers/ssrn/4440516/): Romania struggles to attract sustainable investments because its major companies have low transparency and high greenhouse gas emissions.
- [Unveiling the Liquidity Greenium: Exploring Patterns in the Liquidity of Green versus Conventional Bonds](https://www.ml-quant.com/papers/ssrn/4503175/): Green bonds from governments and energy companies are more liquid than traditional bonds, particularly if they are externally verified or meet international standards.
- [Multifrequency Data Fusion Model for Carbon Price Prediction](https://www.ml-quant.com/papers/repec/wly-jforec-v-44-y-2025-i-2-p-436-458/): The newly introduced MFF-CPPM model in China has demonstrated higher accuracy and flexibility in predicting carbon trading prices compared to current models.
- [Pattern Recognition of Aluminium Arbitrage in Global Trade Data](https://www.ml-quant.com/papers/arxiv/2512.14410/): A study found that efforts to reduce carbon emissions in the aluminum industry have led to illegal trade practices, highlighting the need for new customs enforcement strategies.
- [Carbon Offset Markets](https://www.ml-quant.com/papers/ssrn/4975481/): The research explores the relationship between prices in Australia's renewable energy certificate market, carbon offsets market, and electricity market from May 2018 to June 2023, using a portfolio approach for backtesting.
- [Mutual Fund Trading](https://www.ml-quant.com/papers/ssrn/4943397/): A new method reveals that individual mutual funds strategically trade ESG stocks, particularly around the extreme ESG rating categories' cutoffs.