While renewable energies are a relatively young market with risk and
uncertainties, they also exhibit attractive growth prospects for
financial and strategic investors. Confronted with recent turmoil in
the financial system, large institutional investors with a long-term
horizon are looking for alternative investment opportunities. Beyond
real estate investments, the financing of renewable energy projects
is increasingly seen as an attractive asset class by institutional
investors. A neglected dimension that heavily influences investments
is energy policy. Recent research suggests that investment
decision-making is subject to influence beyond risk and return, such
The Novelty of the proposed research project is twofold. We
(a) compare affective influences between strategic and financial investors, and
(b) use an innovative experimental approach combined with a final reflection of the results in focus groups.
The main research questions of this project are
• What is the role of affective influences on risk-return perceptions of investors in renewable energy projects?
• How do these perceptions differ between financial and strategic investors in renewable energy projects?
• What are the implications for designing effective energy policies in Switzerland?
Investment Decision, Bounded Rationality, Asset Allocation, Energy Policy
|type||applied research project|
|start of project||2012|
|end of project||2013|
|principal||Swiss Federal Office of Energy|
Energy Economics, Energy Policy, Energy Finance, Technology and
Innovation Management, Behavioral Finance, Decision Sciences
Focus Groups, Interviews, Experimental Methods