When green turns red: Is the perception of greenwashing a barrier to individual green investment?
Year: 2025
Type: article
Study design: Observational Study
Abstract: Based on a survey of 2,215 French investors, this study examines the impact of greenwashing perception on individual investment decisions. Our findings reveal that greenwashing perception is negatively related to green investing. Specifically, A one-point increase in greenwashing reduces investment likelihood by 1.68 percentage points. This perception discourages traditional investors from considering green funds and dissuades existing green investors from increasing their green investments. Moreover, consistent with negativity bias, low perceptions of greenwashing have no positive effect on green investments, while high perceptions negatively affect them by triggering negative emotions that heighten risk perception and deter green investment.
Source: Finance research letters
Authors: Syrine Gacem, Fabrice Hervé, Sylvain Marsat
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,730
OpenAlex ID: W4410529754