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

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  • Michael L. Polemis
  • Achilleas Spais

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.

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  • Michael L. Polemis & Achilleas Spais, 2020. "Disentangling the drivers of renewable energy investments: The role of behavioral factors," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2170-2180, September.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:6:p:2170-2180
    DOI: 10.1002/bse.2493
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    Cited by:

    1. Evangelia Karasmanaki & Evangelos Grigoroudis & Spyridon Galatsidas & Georgios Tsantopoulos, 2023. "Citizen Satisfaction with Renewable Energy Investments: A Multi-Criteria Satisfaction Analysis," Energies, MDPI, vol. 16(10), pages 1-20, May.
    2. Carmen‐Pilar Marti‐Ballester, 2020. "Examining the behavior of renewable‐energy fund investors," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2624-2634, September.
    3. Isabel‐María García‐Sánchez & Isabel Gallego‐Álvarez & José‐Luis Zafra‐Gómez, 2021. "Do independent, female and specialist directors promote eco‐innovation and eco‐design in agri‐food firms?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1136-1152, February.
    4. Alessandro Muscio & Felice Simonelli & Hien Vu, 2023. "Bridging the valley of death in the EU renewable energy sector: Toward a new energy policy," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4620-4635, November.
    5. João Reis & Paula Santo & Nuno Melão, 2020. "Artificial Intelligence Research and Its Contributions to the European Union’s Political Governance: Comparative Study between Member States," Social Sciences, MDPI, vol. 9(11), pages 1-17, November.

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