Green Finance and Corporate Sustainability: Investment Behaviour in the Renewable Energy Sector
Year: 2026
Type: article
Abstract: In recent years, the growing urgency to address environmental challenges has brought green finance to the forefront of academic and policy discussions.Against this backdrop, the present study examines how financial considerations and sustainability imperatives are shaping investment behaviour in the renewable energy sector.The paper seeks to understand not only the motivations driving investors and firms toward green investments but also the practical constraints that continue to influence their decisions.Drawing on both primary insights and secondary evidence, the study adopts an analytical approach to explore the role of environmental awareness, regulatory support, and financial incentives in guiding investment choices.The findings suggest that while there is a clear and increasing shift toward sustainability-oriented investments, decision-making remains strongly influenced by perceived risk, cost structures, and policy stability.Investors appear more inclined toward renewable energy projects when supported by transparent regulations, fiscal incentives, and long-term viability signals.At the same time, the study highlights those barriers such as high initial capital requirements, information asymmetry, and uncertainty in policy implementation continue to limit the full potential of green finance.These challenges underline the need for a more integrated framework where financial markets, regulatory bodies, and corporate strategies align toward sustainability goals.The paper concludes that strengthening green finance mechanisms and improving investor confidence are critical to accelerating the transition toward a sustainable energy future.It offers practical implications for policymakers and financial institutions to design more effective instruments that can bridge the gap between sustainability ambitions and investment realities.
Institution: Siva Sivani Degree College
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7154685679