IDEAS home Printed from https://ideas.repec.org//a/eee/eneeco/v88y2020ics0140988320300931.html

Exploring citizens' decision to crowdfund renewable energy projects: Quantitative evidence from France

Author

Listed:
  • Bourcet, Clémence
  • Bovari, Emmanuel

Abstract

Over the past few years, benefiting from broad citizen and political support, renewable energy (RE) crowdfunding has experienced a strong growth in France. RE crowdfunding is a relevant instrument to support the transition from fossil to RE sources by simultaneously diversifying funding possibilities, committing retail investors to the energy transition, and fostering local acceptance. Thus, it is crucial to better understand the RE crowdfunding investment decision-making process to design and assess related policies. However, the existing literature on RE crowdfunding is relatively scarce and has not focused on this issue so far. Relying on a novel survey dataset, this article specifically aims at filling this gap using a probit regression analysis. Our findings suggest that, among the French population, the main predictors of the decision to invest in RE crowdfunding (sign in parentheses) are: (i) the general opinion about the RE sector (positive), (ii) opinions about the RE sector durability (i.e., business continuity over time) and investment opportunities transparency (positive), and (iii) risk perception (negative). Besides this, positive and strong spillovers arise from existing RE investments in other vehicles. These results are unchanged by the introduction of various controls. Additionally, they suggest that the policy framework recently implemented in France – such as the Greenfin label (2015), RE development targets explicitly introduced in the Programmation pluriannuelle de l'énergie (2015), or the recent PACTE law (2019) that provides support to various green investment possibilities – is relevant to foster the development of RE crowdfunding. Such policies indeed contribute to anchor investors' expectations, improve coordination and transparency, and provide spillovers' opportunities, which are the key levers identified in this paper.

Suggested Citation

  • Bourcet, Clémence & Bovari, Emmanuel, 2020. "Exploring citizens' decision to crowdfund renewable energy projects: Quantitative evidence from France," Energy Economics, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:eneeco:v:88:y:2020:i:c:s0140988320300931
    DOI: 10.1016/j.eneco.2020.104754
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988320300931
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2020.104754?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Knoefel, Jan & Sagebiel, Julian & Yildiz, Özgür & Müller, Jakob R. & Rommel, Jens, 2018. "A consumer perspective on corporate governance in the energy transition: Evidence from a Discrete Choice Experiment in Germany," Energy Economics, Elsevier, vol. 75(C), pages 440-448.
    2. Enevoldsen, Peter & Sovacool, Benjamin K., 2016. "Examining the social acceptance of wind energy: Practical guidelines for onshore wind project development in France," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 178-184.
    3. McInerney, Celine & Bunn, Derek W., 2019. "Expansion of the investor base for the energy transition," Energy Policy, Elsevier, vol. 129(C), pages 1240-1244.
    4. Clémence Bourcet & Cécile Cézanne & Sandra Rigot & Laurence Saglietto, 2019. "Le financement participatif de projets d’énergies renouvelables (EnR) : éclairages sur le modèle économique et les risques d’une plateforme française," Innovations, De Boeck Université, vol. 0(2), pages 151-177.
    5. Garry Bruton & Susanna Khavul & Donald Siegel & Mike Wright, 2015. "New Financial Alternatives in Seeding Entrepreneurship: Microfinance, Crowdfunding, and Peer–to–Peer Innovations," Entrepreneurship Theory and Practice, , vol. 39(1), pages 9-26, January.
    6. Nirjhar Nigam & Sondes Mbarek & Cristiane Benetti, 2018. "Crowdfunding to finance eco-innovation: case studies from leading renewable energy platforms," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 195-219.
    7. Cumming, Douglas J. & Leboeuf, Gael & Schwienbacher, Armin, 2017. "Crowdfunding cleantech," Energy Economics, Elsevier, vol. 65(C), pages 292-303.
    8. Carla Martínez-Climent & Ana Zorio-Grima & Domingo Ribeiro-Soriano, 2018. "Financial return crowdfunding: literature review and bibliometric analysis," International Entrepreneurship and Management Journal, Springer, vol. 14(3), pages 527-553, September.
    9. Jeremy C. Short & David J. Ketchen Jr. & Aaron F. McKenny & Thomas H. Allison & R. Duane Ireland, 2017. "Research on Crowdfunding: Reviewing the (Very Recent) past and Celebrating the Present," Entrepreneurship Theory and Practice, , vol. 41(2), pages 149-160, March.
    10. Elinor Ostrom, 2016. "Nested Externalities and Polycentric Institutions: Must We Wait for Global Solutions to Climate Change Before Taking Actions at Other Scales?," Studies in Economic Theory, in: Graciela Chichilnisky & Armon Rezai (ed.), The Economics of the Global Environment, pages 259-276, Springer.
    11. Painuly, J.P, 2001. "Barriers to renewable energy penetration; a framework for analysis," Renewable Energy, Elsevier, vol. 24(1), pages 73-89.
    12. Reboredo, Juan C., 2015. "Renewable energy contribution to the energy supply: Is there convergence across countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 290-295.
    13. Bauwens, Thomas & Devine-Wright, Patrick, 2018. "Positive energies? An empirical study of community energy participation and attitudes to renewable energy," Energy Policy, Elsevier, vol. 118(C), pages 612-625.
    14. Andreas Hoegen & Dennis M. Steininger & Daniel Veit, 2018. "How do investors decide? An interdisciplinary review of decision-making in crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 339-365, August.
    15. Thomas H. Allison & Blakley C. Davis & Jeremy C. Short & Justin W. Webb, 2015. "Crowdfunding in a Prosocial Microlending Environment: Examining the Role of Intrinsic versus Extrinsic Cues," Entrepreneurship Theory and Practice, , vol. 39(1), pages 53-73, January.
    16. Lam, Patrick T.I. & Law, Angel O.K., 2016. "Crowdfunding for renewable and sustainable energy projects: An exploratory case study approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 11-20.
    17. Bergek, Anna & Mignon, Ingrid & Sundberg, Gunnel, 2013. "Who invests in renewable electricity production? Empirical evidence and suggestions for further research," Energy Policy, Elsevier, vol. 56(C), pages 568-581.
    18. Bauwens, Thomas & Eyre, Nick, 2017. "Exploring the links between community-based governance and sustainable energy use: Quantitative evidence from Flanders," Ecological Economics, Elsevier, vol. 137(C), pages 163-172.
    19. Fabrice Hervé & Elodie Manthé & Aurélie Sannajust & Armin Schwienbacher, 2019. "Determinants of individual investment decisions in investment‐based crowdfunding," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 46(5-6), pages 762-783, May.
    20. Magdalena Cholakova & Bart Clarysse, 2015. "Does the Possibility to Make Equity Investments in Crowdfunding Projects Crowd Out Reward–Based Investments?," Entrepreneurship Theory and Practice, , vol. 39(1), pages 145-172, January.
    21. Bourcet, Clémence, 2020. "Empirical determinants of renewable energy deployment: A systematic literature review," Energy Economics, Elsevier, vol. 85(C).
    22. Clark, Robyn & Reed, James & Sunderland, Terry, 2018. "Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance," Land Use Policy, Elsevier, vol. 71(C), pages 335-346.
    23. Bauwens, Thomas, 2019. "Analyzing the determinants of the size of investments by community renewable energy members: Findings and policy implications from Flanders," Energy Policy, Elsevier, vol. 129(C), pages 841-852.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carla Martínez-Climent & Ricardo Costa-Climent & Pejvak Oghazi, 2019. "Sustainable Financing through Crowdfunding," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    2. Allison, Thomas H. & Davis, Blakley C. & Webb, Justin W. & Short, Jeremy C., 2017. "Persuasion in crowdfunding: An elaboration likelihood model of crowdfunding performance," Journal of Business Venturing, Elsevier, vol. 32(6), pages 707-725.
    3. Bauwens, Thomas, 2019. "Analyzing the determinants of the size of investments by community renewable energy members: Findings and policy implications from Flanders," Energy Policy, Elsevier, vol. 129(C), pages 841-852.
    4. Liu, Aiping & Urquía-Grande, Elena & López-Sánchez, Pilar & Rodríguez-López, Ángel, 2023. "Research into microfinance and ICTs: A bibliometric analysis," Evaluation and Program Planning, Elsevier, vol. 97(C).
    5. W. Cai & F.H.J. Polzin & F.C. Stam, 2019. "Crowdfunding and Social Capital: A Systematic Literature Review," Working Papers 19-05, Utrecht School of Economics.
    6. Kazem Mochkabadi & Christine K. Volkmann, 2020. "Equity crowdfunding: a systematic review of the literature," Small Business Economics, Springer, vol. 54(1), pages 75-118, January.
    7. Bagheri, Afsaneh & Chitsazan, Hasti & Ebrahimi, Ashkan, 2019. "Crowdfunding motivations: A focus on donors' perspectives," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 218-232.
    8. Stefania Testa & Paolo Roma & Maria Vasi & Silvano Cincotti, 2020. "Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 530-546, February.
    9. Kristian Roed Nielsen & Julia Katharina Binder, 2021. "I Am What I Pledge: The Importance of Value Alignment for Mobilizing Backers in Reward-Based Crowdfunding," Entrepreneurship Theory and Practice, , vol. 45(3), pages 531-561, May.
    10. Penz, R. Frederic & Hörisch, Jacob & Tenner, Isabell, 2022. "Investors in environmental ventures want good money—and a clean conscience: How framing, interest rates, and the environmental impact of crowdlending projects influence funding decisions," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    11. Messeni Petruzzelli, Antonio & Natalicchio, Angelo & Panniello, Umberto & Roma, Paolo, 2019. "Understanding the crowdfunding phenomenon and its implications for sustainability," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 138-148.
    12. Zhang, Haisu & Chen, Weizhi, 2019. "Crowdfunding technological innovations: Interaction between consumer benefits and rewards," Technovation, Elsevier, vol. 84, pages 11-20.
    13. Ferretti, Riccardo & Venturelli, Valeria & Pedrazzoli, Alessia, 2021. "Do multiple competing offerings on a crowdfunding platform influence investment behavior?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    14. Fabrice Hervé & Armin Schwienbacher, 2018. "Crowdfunding And Innovation," Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1514-1530, December.
    15. Mohammad Tariqul Islam Khan, 2022. "Determinants and preferences for a crowdfunding project," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
    16. Etienne Schraven & Elco van Burg & Marco van Gelderen & Enno Masurel, 2020. "Predictions of Crowdfunding Campaign Success: The Influence of First Impressions on Accuracy and Positivity," JRFM, MDPI, vol. 13(12), pages 1-16, December.
    17. Hadar Gafni & Marek Hudon & Anaïs Périlleux, 2021. "Business or Basic Needs? The Impact of Loan Purpose on Social Crowdfunding Platforms," Journal of Business Ethics, Springer, vol. 173(4), pages 777-793, November.
    18. Matthew Josefy & Thomas J. Dean & Lumina S. Albert & Markus A. Fitza, 2017. "The Role of Community in Crowdfunding Success: Evidence on Cultural Attributes in Funding Campaigns to “Save the Local Theaterâ€," Entrepreneurship Theory and Practice, , vol. 41(2), pages 161-182, March.
    19. Toxopeus, Helen & Polzin, Friedemann & Cai, Wanxiang & Huisman, Ronald, 2025. "Investor types and campaign dynamics in investment crowdfunding: A herding and collective action perspective," Research Policy, Elsevier, vol. 54(9).
    20. Friedemann Polzin & Helen Toxopeus & Erik Stam, 2018. "The wisdom of the crowd in funding: information heterogeneity and social networks of crowdfunders," Small Business Economics, Springer, vol. 50(2), pages 251-273, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:88:y:2020:i:c:s0140988320300931. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.