Abstract
Despite sustainable investment flows having increased significantly over the past decade for transforming the current energy system, a large investment gap remains. This research explores the complex links between institutional investors' expectations on the speed of the energy transition and their sustainability-related investment behaviours. Through in-depth semi-structured interviews with institutional investors, we construct a complex system model using a causal mapping approach, illustrating complex relationships within the sustainable investment system. Our contribution involves the development of multi-layer cognitive maps for different types of institutional investors, followed by a composite causal map that dissects key investment behaviours and investor expectations. Results reveal interlinked concepts influencing investment behaviour and highlight feedback loops with potential amplifying effects on investor expectations and investment behaviour. Two critical feedback loops emerge: 1) the interplay between political and financial support for the energy transition and the associated cost, and 2) the intricate relationship between sustainability factors and asset valuation. Addressing these interconnected issues simultaneously and monitor negative feedback loops that may curtail sustainable finance flows are vital. The results reveal heterogeneities amongst institutional investors such as fiduciary duties, stranded assets, the importance of fossil fuels in the energy system. In sum, our insights provide a foundation for holistic energy policies and a reference system for evaluating policies aimed at accelerating green finance.
| Original language | English |
|---|---|
| Article number | 107444 |
| Journal | Energy Economics |
| Early online date | 7 Mar 2024 |
| DOIs | |
| Publication status | E-pub ahead of print - 7 Mar 2024 |
Fingerprint
Dive into the research topics of 'Institutional investor behaviour and the energy transition: A complexity framework for accelerating sustainable finance from UK investors'. Together they form a unique fingerprint.
View full fingerprint
Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver
Persad, K., Xu, B. (2024). Institutional investor behaviour and the energy transition: A complexity framework for accelerating sustainable finance from UK investors. Energy Economics, Article 107444. Advance online publication. https://doi.org/10.1016/j.eneco.2024.107444
Persad, Kandace ; Xu, Bing ; Greening, Phil. / Institutional investor behaviour and the energy transition : A complexity framework for accelerating sustainable finance from UK investors. In: Energy Economics. 2024.
@article{900effd7295d4589a14927c4d3317a21,
title = "Institutional investor behaviour and the energy transition: A complexity framework for accelerating sustainable finance from UK investors",
abstract = "Despite sustainable investment flows having increased significantly over the past decade for transforming the current energy system, a large investment gap remains. This research explores the complex links between institutional investors' expectations on the speed of the energy transition and their sustainability-related investment behaviours. Through in-depth semi-structured interviews with institutional investors, we construct a complex system model using a causal mapping approach, illustrating complex relationships within the sustainable investment system. Our contribution involves the development of multi-layer cognitive maps for different types of institutional investors, followed by a composite causal map that dissects key investment behaviours and investor expectations. Results reveal interlinked concepts influencing investment behaviour and highlight feedback loops with potential amplifying effects on investor expectations and investment behaviour. Two critical feedback loops emerge: 1) the interplay between political and financial support for the energy transition and the associated cost, and 2) the intricate relationship between sustainability factors and asset valuation. Addressing these interconnected issues simultaneously and monitor negative feedback loops that may curtail sustainable finance flows are vital. The results reveal heterogeneities amongst institutional investors such as fiduciary duties, stranded assets, the importance of fossil fuels in the energy system. In sum, our insights provide a foundation for holistic energy policies and a reference system for evaluating policies aimed at accelerating green finance.",
author = "Kandace Persad and Bing Xu and Phil Greening",
year = "2024",
month = mar,
day = "7",
doi = "10.1016/j.eneco.2024.107444",
language = "English",
journal = "Energy Economics",
issn = "0140-9883",
publisher = "Elsevier",
}
Persad, K, Xu, B 2024, 'Institutional investor behaviour and the energy transition: A complexity framework for accelerating sustainable finance from UK investors', Energy Economics. https://doi.org/10.1016/j.eneco.2024.107444
Institutional investor behaviour and the energy transition: A complexity framework for accelerating sustainable finance from UK investors. / Persad, Kandace; Xu, Bing; Greening, Phil.
In: Energy Economics, 07.03.2024.
Research output: Contribution to journal › Article › peer-review
TY - JOUR
T1 - Institutional investor behaviour and the energy transition
T2 - A complexity framework for accelerating sustainable finance from UK investors
AU - Persad, Kandace
AU - Xu, Bing
AU - Greening, Phil
PY - 2024/3/7
Y1 - 2024/3/7
N2 - Despite sustainable investment flows having increased significantly over the past decade for transforming the current energy system, a large investment gap remains. This research explores the complex links between institutional investors' expectations on the speed of the energy transition and their sustainability-related investment behaviours. Through in-depth semi-structured interviews with institutional investors, we construct a complex system model using a causal mapping approach, illustrating complex relationships within the sustainable investment system. Our contribution involves the development of multi-layer cognitive maps for different types of institutional investors, followed by a composite causal map that dissects key investment behaviours and investor expectations. Results reveal interlinked concepts influencing investment behaviour and highlight feedback loops with potential amplifying effects on investor expectations and investment behaviour. Two critical feedback loops emerge: 1) the interplay between political and financial support for the energy transition and the associated cost, and 2) the intricate relationship between sustainability factors and asset valuation. Addressing these interconnected issues simultaneously and monitor negative feedback loops that may curtail sustainable finance flows are vital. The results reveal heterogeneities amongst institutional investors such as fiduciary duties, stranded assets, the importance of fossil fuels in the energy system. In sum, our insights provide a foundation for holistic energy policies and a reference system for evaluating policies aimed at accelerating green finance.
AB - Despite sustainable investment flows having increased significantly over the past decade for transforming the current energy system, a large investment gap remains. This research explores the complex links between institutional investors' expectations on the speed of the energy transition and their sustainability-related investment behaviours. Through in-depth semi-structured interviews with institutional investors, we construct a complex system model using a causal mapping approach, illustrating complex relationships within the sustainable investment system. Our contribution involves the development of multi-layer cognitive maps for different types of institutional investors, followed by a composite causal map that dissects key investment behaviours and investor expectations. Results reveal interlinked concepts influencing investment behaviour and highlight feedback loops with potential amplifying effects on investor expectations and investment behaviour. Two critical feedback loops emerge: 1) the interplay between political and financial support for the energy transition and the associated cost, and 2) the intricate relationship between sustainability factors and asset valuation. Addressing these interconnected issues simultaneously and monitor negative feedback loops that may curtail sustainable finance flows are vital. The results reveal heterogeneities amongst institutional investors such as fiduciary duties, stranded assets, the importance of fossil fuels in the energy system. In sum, our insights provide a foundation for holistic energy policies and a reference system for evaluating policies aimed at accelerating green finance.
U2 - 10.1016/j.eneco.2024.107444
DO - 10.1016/j.eneco.2024.107444
M3 - Article
SN - 0140-9883
JO - Energy Economics
JF - Energy Economics
M1 - 107444
ER -
Persad K, Xu B, Greening P. Institutional investor behaviour and the energy transition: A complexity framework for accelerating sustainable finance from UK investors. Energy Economics. 2024 Mar 7;107444. Epub 2024 Mar 7. doi: 10.1016/j.eneco.2024.107444
