RISK PERCEPTION AND INVESTMENT BEHAVIOUR IN GREEN FINANCE: A STUDY OF PRIVATE SECTOR RENEWABLE ENERGY INVESTORS IN INDIA

Abstract

The concept of green finance has developed in recent years as an integral part of sustainable economic development owing to the fact that it entails the allocation of financial resources into activities that provide environmental gain as well as economic growth. The rising relevance of renewable energy and environmentally responsible financial management and investments has made investors' awareness and perception of green-finance instruments a subject of research interest. The current study aims at analysing the risk perception and investing behaviour of Indian investors with respect to green finance, especially green-finance instruments that relate to renewable energy. The research will be based on primary data obtained by administering a questionnaire survey to 80 respondents over the age of 25. A five-point Likert scale and purposive sampling will be used in conducting the study. Awareness, investment behaviour, environmental factors and perceptions of financial-economic gains from green finance instruments like green loans, green bonds, green equity, renewable energy and sustainable mutual funds will be analysed in the study. Cronbach's Alpha will be used for reliability, whereas ANOVA will be employed in carrying out the statistical analysis.