Texas's cost of banning ESG-friendly banks from the municipal bond market : The Indicator from Planet Money What happens to local government projects when the big banks that back them leave the state? A Texas-sized experiment in values-based financing.
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ESG bans cost Texas

ESG bans cost Texas

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Tamir Kalifa/Getty Images
Texas Gov. Greg Abbott speaks during a border security briefing with sheriffs from border communities at the Texas State Capitol on July 10 in Austin, Texas.
Tamir Kalifa/Getty Images

Last year, Texas put its money where its mouth was by barring local governments from doing business with banks it said didn't support oil, gas and guns. Economists now say that move came at a cost.

Today, we analyze Texas' live experiment trying to distance government financing from banks that have environmental, social and governance (ESG) policies.

Read Daniel Garrett and Ivan Ivanov's study here.

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For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at
plus.npr.org.