Theory of Planned Behavior and Environmental Concern on Green Investment Intention: The Mediation Role of Green Trust

The research aims to examine the green investment intentions of Indonesian investors. The Indonesian government is starting sustainable development with the capital city of the archipelago which will become a green city. Background. Indonesia is facing environmental problems, one of which is the level of air pollution which places Indonesia at number 26 out of 131 countries recorded as monitoring with poor air quality according to the 2022 IQAir report. Therefore, the government has issued green sukuk as a green investment to further support green projects. Previous research has been conducted in many developing countries with the theory of planned behavior as a determinant. The novelty of the research model is that the environmental concerns variable is independent and green trust is the mediating variable. The research data collected was primary data through distributing questionnaires to 210 investors in Indonesia. The collected data was tested using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) analysis method. The research results show that green perceived behavioral control and environmental concern have a significant positive effect on green investment intention. Green trust also mediates the relationship between green perceived behavioral control and environmental concern toward green investment intention. The research results also show that green attitude and green subjective norms do not influence green investment intention directly and indirectly with the mediating effect of green trust. Green perceived behavioral control and environmental concern are variables that have an influence on investment intention. This explains that investors’ actions arise from within themselves accompanied by concern for the environment.