Willingness to Pay for Sustainable Investment Attributes: A Mixed Logit Analysis of SDG 11

Ángel-Sabino Mirón Sanguino (), Elena Muñoz-Muñoz, Eva Crespo-Cebada and Carlos Díaz-Caro ()
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Ángel-Sabino Mirón Sanguino: Department of Finance and Accounting, Faculty of Business, Finance and Tourism, Universidad de Extremadura, Avda. de la Universidad, 10071 Cáceres, Spain
Elena Muñoz-Muñoz: Department Business Management and Sociology, Universidad de Extremadura, Avda. De Elvas, s/n, 06006 Badajoz, Spain
Eva Crespo-Cebada: Department of Economics, Universidad de Extremadura, Avda. Adolfo Suárez, s/n, 06007 Badajoz, Spain
Carlos Díaz-Caro: Department of Finance and Accounting, Faculty of Business, Finance and Tourism, Universidad de Extremadura, Avda. de la Universidad, 10071 Cáceres, Spain

Mathematics, 2025, vol. 13, issue 16, 1-22

Abstract: The present article analyzes the value that investors assign to financial products that contribute to Sustainable Development Goal 11 (SDG 11): “Sustainable Cities and Communities” by comparing investor preferences in Spain and Mexico through a choice experiment. Spain and Mexico were selected due to their contrasting levels of economic development, sustainability awareness, and regulatory maturity, offering a meaningful basis for a cross-country comparison. Preferences for investment funds that promote SDG 11 are examined by evaluating key attributes such as financial institution type, expected return, risk level, and explicit contribution to SDG 11. The results, estimated using a mixed logit model applied to a choice experiment with 568 respondents, evaluating attributes such as institution type, return, risk, and contribution to SDG 11, reveal strong risk aversion and a differentiated willingness to pay for sustainable attributes, particularly among Spanish investors. Relevant differences between the two countries emerge, suggesting the need for tailored strategies to foster sustainable investment, especially in Mexico, where sustainability is less valued in investment decisions. The policy implications include the need for investment approaches and communication strategies that are adapted to national contexts. This article concludes with recommendations for designing financial products that better align with the values and expectations of responsible investors, particularly regarding sustainable cities and communities.

Keywords: sustainable investing; SDG 11; choice experiment; willingness to pay; Spain; Mexico; socially responsible finance (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2025
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