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Investor Sentiment and Renewable Energy Investment
Subject area: Management and Commerce · Area of research: Behavioral Finance in Renewable Investment
Abstract
This research investigates the critical role of investor sentiment in shaping investment decisions within the renewable energy sector. As climate change drives global interest toward sustainable energy sources like solar, wind, and hydro, financial investment in these sectors has grown increasingly relevant. However, beyond fundamental analysis, psychological and behavioral factors such as media influence, policy clarity, and perceived risk greatly affect investor choices. This study explores how various sentiment indicators?ranging from emotional satisfaction to peer influence and government announcements?shape both the intent and action of investing in renewable energy. The research combines behavioural finance theories with statistical analysis of investor responses to reveal patterns in sentiment-driven behavior and offers practical insights for fund managers, green finance strategists, and policy architects.
How to cite this paper
@article{1708486,
author = {Shambhavi Mishra},
title = {Investor Sentiment and Renewable Energy Investment},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {8},
number = {11},
pages = {1293-1301},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1708486.pdf},
abstract = {This research investigates the critical role of investor sentiment in shaping investment decisions within the renewable energy sector. As climate change drives global interest toward sustainable energy sources like solar, wind, and hydro, financial investment in these sectors has grown increasingly relevant. However, beyond fundamental analysis, psychological and behavioral factors such as media influence, policy clarity, and perceived risk greatly affect investor choices. This study explores how various sentiment indicators?ranging from emotional satisfaction to peer influence and government announcements?shape both the intent and action of investing in renewable energy. The research combines behavioural finance theories with statistical analysis of investor responses to reveal patterns in sentiment-driven behavior and offers practical insights for fund managers, green finance strategists, and policy architects.},
month = {May},
}