Eco-anxiety, connectedness to nature, and green equity investments

Fabrice Herve and Sylvain Marsat ()
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Sylvain Marsat: Université Clermont-Auvergne - CLERMA - IAE Clermont Auvergne School of Management

Economics Bulletin, 2023, vol. 43, issue 3, 1485 - 1492

Abstract: Green finance, in particular equity finance, is a way for developed economies to address climate change and foster environmental innovation. In this paper, we study the role of environment-related emotions in investment decision-making in green equity funds. We find that both eco-anxiety and connectedness to nature have an impact on the decision to invest in green equity funds, but, interestingly, they do not have an effect on the amount invested. Individual investors are influenced by their emotions and seem to benefit from the ‘warm glow' effect regardless of the amount invested. Our results are consistent with a behavioral explanation of green investing.

Keywords: Green Investment; Green Funds; Eco-anxiety; Connectedness to nature; Emotions; Behavioral Finance (search for similar items in EconPapers)
JEL-codes: D1 G1 (search for similar items in EconPapers)
Date: 2023-09-30
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