Disentangling the drivers of renewable energy investments: The role of behavioral factors

Michael Polemis () and Achilleas Spais

Business Strategy and the Environment, 2020, vol. 29, issue 6, 2170-2180

Abstract: The scope of this study is to investigate the main determinants of renewable energy investments in Greece. For this reason, we build an appropriate framework to infer the decision‐making process in the renewable energy sources (RES). The main drivers are then categorized under two groups as economic, and behavioral ones. In the next stage, we rely on binomial (logit and probit) and quantile regression analysis to estimate the impact of these factors on investment decisions towards RES. Our findings indicate that investors who gain better access to knowledge and exhibit a more positive attitude towards the contribution of artificial intelligence (AI) on the RES industry have a higher share of renewables in their portfolio. We argue that these investors are willing to invest a higher amount in the RES industry today. At the same time, quantile regression models illustrate that this relationship is nonmonotonic (i.e., inverted U shaped curve), arguing that positive attitudes towards the contribution of behavioral factors on RES are not adequate to encourage investments after crossing a certain point (threshold). Based on the empirical findings, we argue that the message to policymakers and government officials is to promote a faster penetration of low carbon technologies to achieve sustainable economic and social growth.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1002/bse.2493

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:29:y:2020:i:6:p:2170-2180

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().