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Fabrice Hervé and Sylvain Marsat
''Eco-anxiety, connectedness to nature, and green equity investments''
( 2023, Vol. 43 No.3 )
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.
Keywords: Green Investment, Green Funds, Eco-anxiety, Connectedness to nature, Emotions, Behavioral Finance
JEL: G1 - General Financial Markets
D1 - Household Behavior: General
Description of Appendix:

Supplementary Materials (Reliability, Correlations, Bivariate tests, VIFs, Marginal effects and OLS Regressions on Green Investment Amount)
Manuscript Received : Feb 22 2023 Manuscript Accepted : Sep 30 2023

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