"Capital Markets' Response to ESG" (Job Market Paper)

Abstract

Environmental, social, and governance (ESG) ratings reach only a narrow band of firms: large or high-impact companies draw close monitoring while smaller and service-sector firms receive little scrutiny. The sample selection this creates poses a basic question—does sustainable finance reward substantive performance, or simply visibility and the ability to disclose? This study asks whether firms’ ESG performance moves the price of capital they face in U.S. markets, and how far firm characteristics such as size and disclosure capacity condition that relationship. Working with an unbalanced panel of U.S.-listed firms covering 2015–2021, I estimate fixed-effects and two-stage least squares models to identify ESG’s causal effect on the implied cost of equity and on debt financing costs alike. Because ESG coverage is non-random, I further add a selection correction that models the probability a firm receives an ESG score at all. Stronger ESG performance proves consistently associated with a lower cost of debt, while its effect on the cost of equity is smaller and less robust. The gap between markets suggests equity and debt investors process sustainability information through different channels, mirroring differences in risk sensitivity, horizon, and style of engagement.

"C-PACE Financing and Policy Structures in Wayne County" (with C. Adamczyk)

Abstract

Property Assessed Clean Energy (PACE) financing is an innovative tool that provides property owners with access to capital for energy efficiency, renewable energy, and water conservation improvements through a special assessment on their property tax bill. By reducing upfront capital barriers, PACE advances local environmental and social goals while offering long-term economic benefits. In Michigan, the commercial PACE (C-PACE) market has expanded significantly, with over $300 million in cumulative assessments statewide and more than $100 million in Wayne County alone as of November 2024. This white paper examines the role of C-PACE in supporting Wayne County’s sustainability objectives, as outlined in the region’s Priority Climate Action Plan. Drawing on Detroit-area case studies and Michigan’s program framework, this paper examines how C-PACE helps local property owners cut emissions, reduce costs, and upgrade building performance. It also highlights key trends shaping the future of C-PACE in Michigan, including recent policy changes, technology innovation, and broader market participation.

"An Updated Measure of Food Insecurity" (with B. Friday), Data Driven Detroit Blog, 2023

Overview

During their time as graduate students at Wayne State University (WSU), Brenna Friday and David Criss studied the drivers and consequences of food insecurity in Detroit, Michigan. Their work in this field was made possible through the support of the Transformative Research in Urban Sustainability Training (T-RUST) program at WSU. This analysis builds upon the food insecurity index model originally developed by Data Driven Detroit (D3) in 2017, and identifies a troubling pattern: the rising risk of food insecurity appears to overshadow the modest improvements observed in specific areas of Detroit.

AEA Summer Mentoring Pipeline Conference, 2022 - present

Workshop for a More Resilient Michigan, 2025

NBER Summer Institute, 2025

Wayne State University Graduate Research Symposium, 2025

AEA Annual Meeting, 2023

Detroit Food 2020 Conference, 2020