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Drivers of Green Investments. Evidence from Professional Investors

Author

Listed:
  • Sebastian M. Peters

  • Jürgen Huber

  • Michael Kirchler

Abstract

The climate crisis is one of the major challenges mankind currently faces and, through green investments, the finance industry can play a crucial role in tackling it. However, this topic still appears to be controversially discussed in finance, and only very few studies have investigated the behavior of finance professionals with respect to green investments. In this experiment, we investigate the behavior of 174 finance professionals and 192 participants of the general population, measuring drivers of decision making in green investments. We find in both participant pools that individuals who say it feels better to invest in green assets also do so. Between the two subject pools, we find no difference in investment propensity in green assets. Furthermore, we observe that financially literate participants invest significantly more green and achieve higher portfolio returns. Interesting, while 89 percent of participants say they would not be ready to forego returns for greener assets, only 10 percent select the portfolio with the highest possible return.

Suggested Citation

  • Sebastian M. Peters & Jürgen Huber & Michael Kirchler, 2026. "Drivers of Green Investments. Evidence from Professional Investors," Working Papers 2026-07, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2026-07
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    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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