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To understand the extent to which individual preferences towards sustainable and especially climate-related investments vary across countries, we are going to conduct an incentivized framed field experiment in five European countries during May and June 2021. We also in-vestigate the importance of different motives for sustainable investments across countries. The experiment is part of a survey of households’ financial decision-makers in France, Germany, the Netherlands, Poland, and Spain, with about 1,000 respondents per country. Our experimental design enables us to calculate the amount of additional fees respondents are willing to pay in order to invest in exchange traded index funds based on the MSCI World ESG Screened Index and the MSCI World Climate Change Index. This allows us to compare not only preferences for sustainable investments across different countries, but also in terms of the thematic focus of sustainable funds. Following Riedl and Smeets (2017), we also analyze to what extent the relevance of pecuniary motives, social signaling, and social prefer-ences for sustainable investment decisions varies across countries. Thus, this study is the first to compare preferences for sustainable investments at the individual level across different countries, while providing identical information and choices to individuals.

We analyze the determinants of hypothetical bias in choice experiments for sustainable investments (SRI). To this end, we compare participants’ willingness to pay derived from incentivized and stated decisions in discrete choice experiments conducted among households’ financial decision makers in Germany. We further extend the set of potential determinants of differences between incentivized and hypothetical choices with the Big Five personality traits. In particular, we analyze the role of extraversion, conscientiousness, and openness to experience, as those traits have been shown to be related to how people react to (monetary) incentives. Our results allow us to shed light on the reliability of previous stated choice analyses in this field and to provide guidance for future experiments.

Based on the well-known observation that social norms can guide individual behavior, this paper empirically examines the causal effect of related information interventions on revealed climate protection activities, measured through incentivized donations. In our field-experi-mental setting, we differentiate between descriptive social norms by providing information about individual climate protection activities in Germany, injunctive social norms by provid-ing information about what people in Germany think about the need for climate protection activities, and a combination of both social norms. Based on representative survey data for more than 1,600 individuals in Germany, our econometric analysis shows some weak evi-dence that information about both descriptive and injunctive social norms increases donations for climate protection. The decomposition of this estimated average treatment effects reveals that the corresponding treatment particularly has a significantly positive effect at the extensive margin, i.e. on the probability to donate for climate protection. These results suggest that a combined information intervention referring to both descriptive and injunctive social norms is at least able to stimulate the general willingness for climate protection. In addition, our analysis of heterogeneous treatment effects reveals that strong social preferences (in terms of altruism and trust) and high environmental attitudes (in terms of environmental awareness and ecological policy identification) induce significantly positive information treatment effects on donations for climate protection. This result suggests that individuals in Germany with a strong environmental and social orientation do not only behave directly more climate-friendly, but can also be better stimulated by information about descriptive and/or injunctive social norms.

Voluntary CO2 offsetting by individuals, firms, and organizations is increasingly considered as a direction of climate policy that is complementary to traditional approaches such as sub-sidies or CO2 taxes. Based on data from a large-scale survey among corporate decision mak-ers, this paper empirically examines corporate CO2 offsetting and its determinants in small- and medium-sized firms in Germany. Our descriptive analysis shows both a rather limited engagement in corporate CO2 offsetting as well as a strong lack of knowledge about its mechanism. The econometric analysis reveals that some firm-specific characteristics like the average age of the employees, firm size, and firm age matter for CO2 offsetting. However, the main estimation results refer to the relevance of general environment-related variables like the implementation of environmental product and service innovations or the share of employees that carry out environment-related tasks and especially of climate-related factors and activities. In particular, the implementation of climate targets and the participation in the EU Emissions Trading System (EU ETS) are strongly significantly positively correlated with CO2 offsetting. In line with similar findings at the individual level, these estimation results imply that corporate CO2 offsetting also does not substitute or crowd out other climate pro-tection and further pro-environmental activities, but rather complements them.

This paper employs a new empirical approach for eliciting preferences for and determinants of sustainable investments at the individual investor level. We examine data from an incentivized framed field experiment that was part of a representative survey among financial decision makers in German households. The analysis reveals strong preferences for sustainable funds. These preferences are especially driven by non-pecuniary factors such as financial literacy, environmental values, and social norms. Interestingly, economic preferences or the Big Five personality traits are only of minor relevance. Our results provide useful implications for the discussion on how to mobilize individual investors for sustainable development.

This paper analyzes the determinants of socially responsible investing (SRI) at the individual investor level. We examine data from an incentivized framed field experiment, which was part of a survey among a representative sample of financial decision makers in German households. Thus, we provide a new approach to elicit preferences for SRI. We further extend the set of potential determinants of SRI and consider all economic preferences according to Falk et al. (2018) and the Big Five personality traits. The analysis reveals that these factors are only of minor relevance in comparison to financial literacy, environmental values, and social norms.

Based on data from a representative survey among citizens in Germany during the peak of the COVID-19 crisis, this paper empirically examines the acceptance of climate-oriented economic stimulus programs and several further climate policy measures. Our descriptive analysis shows no general lower acceptance of climate policy measures compared to the time before the crisis. However, the econometric analysis reveals that individuals with higher negative emotions towards the crisis are significantly less supportive of at least some climate-oriented policy measures. Economic concerns are of particular relevance. For example, a perceived deterioration of the general economic situation due to the COVID-19 crisis has a significantly negative effect on the acceptance of climate-oriented economic stimulus programs. Concerns about the own personal economic and financial situation due to the crisis are significantly negatively correlated with the support of climate-oriented policy measures that directly lead to higher costs in daily life. Besides the relevance of this perceived self-interest, our estimation results also highlight the relevance of social aspects since individuals with a social policy identification are significantly more likely to agree with climate-oriented policy measures that are also financially beneficial for socially de-prived groups, but significantly less likely to support measures that are financially unfa-vorable for them. We discuss several climate policy implications. For example, our estima-tion results suggest that successful climate policy should, especially in times of the COVID-19 crisis, also be socially oriented and consider distribution effects, for example, through financial compensations for costly measures like taxes.

This paper analyzes the potential for citizen participation in renewable energy cooperatives and in the energy transition process. We consider representative survey data for more than 4,200 financial decision-makers in German households and analyze (i) differences between members and non-members of renewable energy cooperatives, (ii) non-members' willingness to participate in energy cooperatives, and (iii) factors determining citizen participation in terms of not only voluntary involvement, but also private investments. We find that the lack of familiarity with energy cooperatives among non-members is a limiting factor for the expansion of citizen participation, a finding that indicates the potential of information campaigns. However, we also reveal a substantial participation potential, as about 40% of the non-members who are familiar with the term "energy cooperative" express a high willingness to become involved. Our econometric analysis based on bivariate binary probit models complements the current state of research by showing the relevance of economic preferences such as time preferences, trust, and negative reciprocity. Interestingly, psychological personality traits, measured by the Big Five, are found to be of minor importance. We additionally confirm the findings of earlier work with regard to the relevance of individual environmental values, social contextual factors, and social norms.

This paper empirically examines the determinants of corporate environmental product and process innovations. In contrast to previous studies, we use panel data from the ASSET4 and Worldscope databases for firms from 25 European countries between 2004 and 2017. This allows us to control for unobserved heterogeneity and time effects. Our fixed and random effects estimations in binary logit models reveal the relevance of this flexible panel data analysis. The estimation results imply positive effects especially of environmental training programs for employees and implemented environmental organizational measures on environmental process innovations. Interestingly, certified environmental management systems (EMS), certified quality management systems, and market pull factors seem to play no role for environmental process innovations, but rather for environmental product innovations. The latter are additionally affected by several technological push factors. This suggests public support of such non-mandatory approaches in order to foster environmental product innovations.

This study empirically analyzes barriers preventing private investors from participating in the market of sustainable and responsible investments (SRI). Thereby, we link the strand of literature regarding participation costs of stockholding, i.e. information and transaction costs, to SRI market participation. The empirical analysis is based on a large online representative dataset for German financial decision makers containing data from a survey and a stated preferences discrete choice experiment, which refers to investment decisions between mutual funds. Contrary to most previous studies, we do not only differentiate between investors who are currently invested in SRI and those who are not invested. Instead we differentiate between four different investor groups, namely socially responsible, skeptical, interested, and conventional investors. We find that these groups face different barriers regarding SRI market participation. Particularly too high (perceived) information costs regarding SRI are a reason for private investors not to invest (more) in SRI. Having not received an offer by their bank seems to be a big hurdle especially for interested investors who seem to have problems overcoming the market entry barrier. Distrusting providers of SRI is an additional issue that especially hinders skeptical and conventional investors to invest (more) in SRI. Based on the experimental results, we see that information related barriers can be decreased by means of sustainability and/or transparency labels. Investor of all four groups have positive stated preferences for funds with transparency or sustainability labels. Hence, labels are an opportunity to decrease information costs of private investors and thus enhance individual demand for SRI.

Based on unique data from a representative computer-based survey among financial decision makers in Germany, this paper empirically examines the determinants of socially responsible investments (SRI). Our econometric analysis implies that the perceived financial performance of SRI matters for the shares of investments in SRI among all investments. However, our main result is that psychological motives, values, and norms like warm glow motives and expectations of the social environment are even more relevant and thus have strong significant effects on SRI. This suggests that SRI investors gain strong non-financial utility from sustainable investments. While the membership in Christian churches and the strength of Christian religiosity also seem to be positively correlated with SRI, these correlations become insignificant if other psychological motives, values, and norms are included in the econometric analysis. Furthermore, a left-wing political orientation rather has significant negative effects on SRI. An explanation for this surprising result is the general aversion of a left-wing identification to the participation in stock markets, which is dominant in SRI.

This paper examines the willingness of private financial decision makers to pay for socially responsible investments (SRI). Our empirical analysis is based on unique data from a representative computer-based survey in Germany that especially comprised two stated choice experiments. The experiments referred to choices among several equity funds and among several three-year fixed-interest investment products and especially comprised sustainability criteria and financial performance indicators as main attributes. Our econometric analysis with mixed logit models reveals strong stated preferences and thus a considerable willingness to pay for sustainable investments. For example, the estimated mean willingness to sacrifice yearly nominal interest rates for sustainable fixed-interest investment products amounts to 0.21 percentage points among a variation between 1.30% and 2.10%. These results are very stable across several robustness checks that also include different techniques to mitigate possible hypothetical biases. Our latent class logit model analysis confirms a high extent of unobserved heterogeneity between different investor groups and especially reveals that specific social values and norms play an important role. Investor groups with strong considerations of norms by the social environment with respect to SRI and especially with high feelings of warm glow from SRI, a strong environmental awareness, and an affinity to left-wing parties have a substantially higher estimated mean willingness to pay for sustainable investments.