Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊 - (Page 11)

METHODOLOGY Andrea Masini and Emanuela Menichetti developed a conceptual model that examines the impact of non-financial factors on renewable energy investments. The model was empirically tested using primary data collected in 2009 through about 100 questionnaires filled out by several groups of European investors, including hedge funds, banks, private equity firms, and insurance companies. Andrea Masini points out that the results may be difficult to generalize because the study was restricted to a specific empirical and geographical context (Europe). Non-financial P RACTICAL A PPLICATIONS factors determine By incorporating cognitive and behavioral elements, Andrea Masini and Emanuela Menichetti's research provides a better understanding of the investors' decision-making process and thus has some implications for: the share of Policy-makers, who could design more effective policy instruments to support renewable energy technologies. This research suggests that policy makers can redirect budgets to better leverage investor biases and their renewable energy impact on investment decisions; for instance, by supporting R&D programs in the public and private sectors, by promoting demonstration projects, technologies in energy and by further disseminating information on renewable energy systems within the relevant business circles and among key stakeholders. Managers of innovative renewable energy projects, who need to attract portfolios. investors. This research suggests that managers can draw on study findings to better communicate to investors about the acceptable degrees of technological risk associated with renewable energy technologies. dedicated policies to support renewables are virtually ineffective or that they will change soon, so they don't count on them too much and prefer to invest in technologies that have already proven their reliability." This leads Andrea Masini to advise policy-makers to focus on the long-term stability of policies. INVESTMENT STRATEGIES FOCUS TOO MUCH ON MATURE RENEWABLES Investors are sensitive to the technical feasibility or the proven performance record of a technology, as well as to institutional pressures. Masini and Menichetti's findings also reveal short investment horizons and extreme sensitivity to the pressure exerted by peers and external consultants in investor decisions. "This pressure tends to have a negative influence, since the industry as a whole is skeptical about the reliability of these technologies," says Masini. "However, investors who have a higher level of experience seem to be able to resist that pressure: they are more likely to increase the share of renewables in their portfolio." percentage of renewable energy investments in their portfolio, he or she must compensate for the risk by including a higher percentage of traditional investments or mature renewables such as offshore wind. But, on the other hand, focusing on a few technologies that are fully proven reduces valuable opportunities for diversifying energy portfolios and hedging against price fluctuations, as well as running a higher risk of missing out on opportunities that are more uncertain and costly but have tremendous potential."■ Based on an interview with Andrea Masini and the article "Investment Decisions in the Renewable Energy Sector: an Analysis of Non-Financial Drivers" co-authored with Emanuela Menichetti (Technological Forecasting and Social Change, vol. 80 no. 3, mars 2013). The study also shows that, contrary to popular belief, investors who have historically bigger appetites for financially and technologically risky technologies do not always have higher percentages of renewable energy investments in their portfolios. "When someone decides to include even a low Knowledge HEC 8

Table of Contents for the Digital Edition of Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊

Cover
Partner companies
Table of Content
公司治理 (David Thesmar)
Corporate governance
欧洲的可再生能源 (Andrea Masini)
Renewable energies in Europe
决策 (Mohammed Abdellaoui)
Why do decision makers underestimate rare events?
建立信任 (Michel Lander)
Building trust for successful mergers and acquisitions
产品线质量的高低端延伸 (Timothy Heath)
Extending product lines up and down in quality
制度变革 (Carlos Ramirez)
Institutional change
奢侈品市场 (Anne Michaut-Denizeau)
The luxury market
创业 (Anisa Shyti)
Entrepreneurship

Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院 研究专刊 - (Page 11)

Table of Contents for the Digital Edition of Knowledge@HEC - Special Issue - 巴黎HEC商学院 研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院 研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊 - (Page 11)

Table of Contents for the Digital Edition of Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊

Knowledge@HEC - Special Issue - 巴黎HEC商学院研究专刊