Affective Influences on Risk-Return Perceptions of Renewable Energy Investors: An Experimental Analysis of Differences between Financial and Strategic Investors


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 as affect.

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?

The final project report is now available online:

Additional Informationsunspecified
Commencement Date1 January 2012
Contributors W├╝stenhagen, Rolf (Project Manager) & Chassot, Sylviane (Project Manager)
Datestamp 16 Sep 2022 10:57
Completion Date 31 August 2013
Publications Chassot, Sylviane: Implicit Cognition, Capabilities, and Incentives: Assessing Investment Response to the Renewable Energy Revolution. SABE/IAREP/ICABEEP 2013 International Conference. Atlanta (GA), USA, 26 July 2013.
Keywords Investment Decision, Bounded Rationality, Asset Allocation, Energy Policy
Methods Focus Groups, Interviews, Experimental Methods
Funders SNF scholarship (advanced)
Principal Swiss Federal Office of Energy
Id 208611
Project Range Institute/School
Reference Number REF-1081-00220
Project Status completed
Subjects other research area
Topics Energy Economics, Energy Policy, Energy Finance, Technology and Innovation Management, Behavioral Finance, Decision Sciences
Project Type applied research project
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