“For a typical large endowment growing at a historically reasonable rate, [divestment] would translate into a loss in value of between $1.4 billion and $7.4 billion by the end of the 20-year period. The equivalent range for medium endowments is between $52 million and $298 million, and the equivalent range for small endowments is between $17 million and $89 million. These frictional costs are in addition to any reduction in investment returns that divestment may impose due to foregone diversification benefits, as discussed in prior literature.”
NewsOctober 19, 2020
Frictional Costs of Fossil Fuel Divestment
“For a typical large endowment growing at a historically reasonable rate, [divestment] would translate into a loss in value of between $1.4 billion and $7.4 billion by the end of the 20-year period. The equivalent range for medium…
