EDHECinfra Paper
The Pricing of Green Infrastructure

The realised and expected financial performance of green power infrastructure investment, 2010-2021

In this paper, we reviewed the empirical evidence of historical outperformance of green infrastructure investments and consider whether this finding implies continued future outperformance.

• Historical performance of the infraGreen® index in comparison with the Core and Core+ segments of the unlisted infrastructure universe
• Comparative analysis of a green and a brown power infrastructure portfolio
• The presence of a systematic green effect in the valuation of green power infrastructure investments
• The role of excess demand in explaining the historical performance of green power investments
• The evolution of the cost of capital of green vs. brown power infrastructure
• How the current green price premium implies that future investors in greener infrastructure should expect lower returns