Determinants of households' intention for investment in renewable energy projects

Abstract

Green finance and investment in renewable energy (RE) projects can contribute to the reduction of climate change and the achievement of sustainable development goals (SDGs). In such projects, households can be contributive in increasing the investment level. To assess the determinants of households' investment intention in RE projects, the theory of planned behavior (TPB) model was extended according to the existing literature on green finance and investment. The primary data was collected from Iranian households (n = 280) using random sampling through structured questionnaire interviews. According to the analyses conducted using structural equation modeling (SEM) and Amos software, attitudes, subjective norms, perceived behavioral control, evaluation of the regulatory framework (ERF), perceived risk, and perceived usefulness of power purchase agreements (PPAs) significantly influence households' intentions to invest in RE projects. The results indicated that perceived risk is influenced by ERF, whereas investment attitudes are influenced by subjective norms and perceived risk. In addition to providing theoretical insights, this study provides empirical findings that can assist policymakers in the process of enabling households to invest in RE projects. According to the study's policy recommendations, the government, financial institutions, and social media should contribute to encouraging households to participate in green finance and investment.