Behavioral Consistency in Green Lifestyle and Green Investment

43 Pages Posted: 3 Nov 2023

See all articles by Chuwen Chen

Chuwen Chen

Zhejiang University

Tse-Chun Lin

The University of Hong Kong - Faculty of Business and Economics

Xingguo Luo

Zhejiang University - Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: October 8, 2023

Abstract

We hypothesize that retail investors exhibit consistent green awareness toward lifestyle behaviors and investment decisions. Employing granular individuals' behavior data from Ant Forest on Alipay, the leading Fintech App in China, we find that individuals with higher levels of pro-environmental behavior in their daily lives have stronger preferences for green investments. For instance, individuals who walk more (instead of driving) tend to invest in green mutual funds in the following month. Our results remain robust after considering alternative measures of green lifestyle behavior and green funds. Overall, we document a novel behavioral consistency between individuals' green lifestyles and financial decision-making.

Keywords: Green investment, Retail investors, Behavioral consistency theory, Fintech App, Pro-environmental behavior

JEL Classification: G11, G18, G41

Suggested Citation

Chen, Chuwen and Lin, Tse-Chun and Luo, Xingguo, Behavioral Consistency in Green Lifestyle and Green Investment (October 8, 2023). Available at SSRN: https://ssrn.com/abstract=4595639 or http://dx.doi.org/10.2139/ssrn.4595639

Chuwen Chen

Zhejiang University ( email )

38 Zheda Road
Hangzhou, Zhejiang 310058
China

Tse-Chun Lin (Contact Author)

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Xingguo Luo

Zhejiang University - Department of Finance ( email )

Hangzhou
China
WeChat: xgluo99 (Phone)

HOME PAGE: http://mypage.zju.edu.cn/xingguo

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