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

Author

Listed:
  • Fabrice Hervé

    (Université de Bourgogne - CREGO - IAE DIJON School of Management)

  • Sylvain Marsat

    (Université Clermont-Auvergne - CLERMA - IAE Clermont Auvergne School of Management)

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.

Suggested Citation

  • Fabrice Hervé & Sylvain Marsat, 2023. "Eco-anxiety, connectedness to nature, and green equity investments," Economics Bulletin, AccessEcon, vol. 43(3), pages 1485-1492.
    • Handle: RePEc:ebl:ecbull:eb-23-00099
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    References listed on IDEAS

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    More about this item

    Keywords

    Green Investment; Green Funds; Eco-anxiety; Connectedness to nature; Emotions; Behavioral Finance;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • D1 - Microeconomics - - Household Behavior

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