Which factors influence retail investors' attitudes towards investments in renewable energies?

In line with the global trend towards socially responsible products, socially responsible investments have gained increasing relevance worldwide. The effect of individuals' concerns about the environmental sustainability of their consumption patterns has not only received increased attention from market participants but also from academics. Existing literature which focuses specifically on investments in renewable energies points out that individuals' attitudes are good predictors or moderators of ecologically friendly investment behavior. This study aims to investigate those factors which influence retail investors' attitudes towards investments in renewable energies. The results are based on an online-survey of participants in Germany and reveal that individuals' social norms, their confidence in NGOs, and their evaluation of the relevant regulatory framework significantly influence their attitudes towards investments in renewable energies. Based on a multiple linear regression, it was found that the conceptual model used explains 49% of individuals' attitudes. The results further reveal that German retail investors can be separated into two groups, namely “Supporters” and “Skeptics”, based on their attitudes towards investments in renewable energies. This study provides important practical implications for the investment community and proposals for future research.