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What are the key factors that influence retail investors' motivations towards green investing?

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Retail investors' motivations towards green investing are influenced by various key factors. Studies show that investors are primarily driven by both pecuniary and non-pecuniary motives, with a strong preference for sustainable funds due to social preferences, warm glow feelings, financial literacy, and environmental values . Additionally, factors such as environmental concern, economic concern, and values play a significant role in shaping investors' attitudes and intentions towards ESG stocks, highlighting the importance of pro-environmental values in decision-making . Moreover, investors are willing to prioritize environmental impact over higher returns, especially for green projects that align with their values, indicating a preference for positive environmental impact in investment decisions . Factors like ESG ratings, credit ratings of green bond issuers, tax exemptions, and awareness of green bonds also influence individual retail investors' decisions to invest in green bonds .

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Open access•Journal Article•DOI Understanding the preference of individual retail investors on green bond in India: An empirical study Dhaval Prajapati, Dipen Paul, Sushant Malik, Dharmesh K. Mishra - Show less +3 more 16 Feb 2021-Investment management & financial innovations 16 Citations	Key factors influencing retail investors' motivations towards green investing are ESG and credit ratings of green bond issuers, tax incentives, and awareness of green bonds.
Journal Article•DOI Do Retail Investors Value Environmental Impact? A Lab-in-the-Field Experiment with Crowdfunders (WITHDRAWN) 01 Aug 2022	Retail investors' motivations towards green investing are influenced by valuing environmental impact, expecting profitability from green projects, and distinct preference for environmental impact over social impact.
Open access•Journal Article•DOI Determinants of individual sustainable investment behavior - A framed field experiment Gunnar Gutsche, Heike Wetzel, Andreas Ziegler - Show less +2 more 01 May 2023-Journal of Economic Behavior and Organization 3 Citations	Key factors influencing retail investors' motivations towards green investing include social preferences, warm glow feelings, financial literacy, and environmental values, with warm glow feelings being the most significant factor.
Journal Article•DOI Investor’s values and investment decision towards ESG stocks Rajdeep Kumar Raut, Niranjan Mahendranath Shastri, Akshay Kumar Mishra, Aviral Kumar Tiwari - Show less +3 more 20 Jun 2023-Review of Accounting and Finance	Key factors influencing retail investors' motivations towards green investing are environmental concern (altruistic value) and economic concern (egoistic value), with environmental concern being the more significant predictor.

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