By Gideon Parchomovsky & Endre Stavang. Full text here.
In this Article, we introduce an innovative market-based mechanism designed for the advancement of environmental goals. We propose enacting legislation that would empower (but not force) green firms to transfer a call option over a block of their shares to a publicly traded company of their choice. The implementation of our mechanism would give established corporations a financial stake in green technologies, thereby incentivizing them to adopt those technologies and promote them in the marketplace.