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Saving with a Social Impact: Evidence from Trento Province

Author

Listed:
  • Stefania Basiglio

    (ESOMAS Department, Scuola di Management e Economia, Università degli Studi di Torino, Corso Unione Sovietica 218 bis, 10134 Torino, Italy)

  • Mariacristina Rossi

    (Department of Management, Scuola di Management e Economia, Università degli Studi di Torino, Corso Unione Sovietica 218 bis, 10134 Torino, Italy)

  • Riccardo Salomone

    (Faculty of Law, Università degli Studi di Trento, Via Verdi 53, 38122 Trento, Italy)

  • Costanza Torricelli

    (Department of Economics, Università di Modena e Reggio Emilia, Viale Berengario 41, 41100 Modena, Italy)

Abstract

In this paper, we investigate the determinants of investing, focusing on its potential social impact. In particular, we consider whether there is room for expanding impact investing through social savings. The increasing trend in the demand for social finance makes the topic of unique interest, particularly when data on preferences for social saving can be collected at the individual level. We investigate the determinants and drivers of saving with a social goal running a survey conducted in Trentino-Alto Adige in which respondents are asked to allocate their portfolio to possible social investments. In line with the evidence collected in the Netherlands by Riedl and Smeets (2014), our results show a strong preference for a lower return, with the condition that the return is invested in a community programme, and little interest in the monetary return of the investment. Respondents are either inclined to put their entire portfolio into saving for the community or not to invest at all. This result suggests that there is a consistent demand, only partially accommodated by the supply, for financial products investing in the community, rather than for a monetary return.

Suggested Citation

  • Stefania Basiglio & Mariacristina Rossi & Riccardo Salomone & Costanza Torricelli, 2020. "Saving with a Social Impact: Evidence from Trento Province," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8363-:d:426443
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    References listed on IDEAS

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    1. Rossi, Mariacristina & Sansone, Dario & van Soest, Arthur & Torricelli, Costanza, 2019. "Household preferences for socially responsible investments," Journal of Banking & Finance, Elsevier, vol. 105(C), pages 107-120.
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    Cited by:

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