Behavioural Factors Influence in Decision Making Process and Investment with renewable energy

Behavioural Factors Influence in Decision Making Process and Investment with renewable energy

Today, energy is an exigency for peoples. Several theories are forecasting this energy resource will be limited in the arriving years with an obvious devastating result to the environment. In addition, the forecasting of renewable energy, supply and demand, are fundamental ingredient for energy planning, strategies, formulating and counseling energy policies (Bhattacharyya and Timilsina, 2009). For a long time, renewable energy investments were understood to be widely ideological statements. In the past couple years, however, technical delicacy has frequently increased, the expense of investment has decreased significantly, and social behavior and attitudes have changed. Renewable energy are not any more in this present thought to be obstacle to growth but are fully agreeable by the public. Renewables energies have conquer their initial dilemma.

Renewable energy is arising as a sustainable solution, friendly with environmental and long-term, a source with an effective cost to energy for the future.
Controversies for the backing of renewable energy technologies are originally constant in our present perception-and appetence to mitigate, the several negative influence of climate change.

As well as the reasons of environment, there are obviously social human factors for wanting to convert and modify the global energy system. Many considerations and reasonable factors will switch this desire of change. Mitchell, Waston and Whiting (2013) stated that one of the most memorable factors is the energy security which has many definitions such: long-term stability, robustness to long-term, durability of the system and flexibility to sharp system stocks are all factors.

The renewable alternatives are eligible of displace traditional energy sources in most of their implementation at competitive long run prices (Arash, Senol and Koc, 2003).
Choosing the suitable source of energy in which to make an investment is a function that implicates several policies and factors. Polatidis et al (2006) stated that during past decade the renewable energy source investment has attained a large interest, and several nations have undertake themselves to contain them in their energy supply system. Moreover, several punctuate of factors must thus be taken into consideration. They protrude from the non-centralize figure of renewable energy source and the confidentialities imposed on the matching decision making process. In the majority of issues, these parameters could be activated over the containment of many economic, technological, risk, social and environmental criteria in the planning practice.

On the other hand, the decision-making in renewable energy can be sighted a various criteria decision-making dilemma with associated alternatives and criteria. This function should consider many inconsistent parts due of the mounting complexity of the technological, social, economic and environmental factors (Afgan and Carvalho, 2002)

According to several statics and as per the EIA (2014) statement the investment in the technologies of renewable energy are accounted with growing benefit as an efficient means to encourage and catalyze growth and quicken the recovery from the latest financial crisis. On the other hand the energy analysts forecasting a massive additional investment are required to recognize this moving to a low carbon economy which creates a particular challenge in the present economic (Masini and Menichetti, 2010).

In addition, in the earlier 1990s realize detonations which totally changed the energy policy around the globe, leaden by environmental, security, economical and social security, which put the regulation of energy in overflow. Many of these changes have a deep impact on renewable energy, both from policies that indirectly impact impulse and barriers for renewable energy and from other policies clearly designed to accelerate renewable energy (Beck and Martinot, 2004)

The necessity of legislator policies in order to backup renewable energy is, most of the times, attributed to several of barriers, or terms that restrain investment from take place. And In many cases the result of barriers is to set the renewable energy at a regulatory, economic, or deprivation relative to other shapes of energy supply. As per Moskovitz (1992) these policies should pretend to educate investors in order to build a road map and clear for them many barriers such: lack of information, resources planning and costs, acquisition practices against renewables and processes in order to regulate time and expenses.

Barriers include to deactivate traditional forms of energy elevated primary capital costs connected with shortage of fuel-price risk assessment, deficient capital markets, paucity of information or skills, indigent market acceptance, financing uncertainties and risks, technology partiality, high transactions cost and a various of institutional and regulatory factors. (Beck and Martinot, 2004).

As per Frankfurt School of Finance and Management (2013), investments of private sector become in present the widest source of capital for the renewable energy projects and the big part of these investments has come from the below four sectors:

a. Vertical capital
b. Private equity
c. Public capital market
d. Investment banking.
In addition, many research studies done earlier by an organization such Bloomberg NEF & Deutshe Bank shown that the investment in renewable energy have led to a prime and practitioners take a necessary action in order to reach and provide a figure of allocated tools for financial analysis and boosting the decision making action and process. (Bloomberg NEF, 2009)

Kaplan (1986) accounting based cost analysis, argues that the concern technology is to preferred over the invention, which may drive investors to oversee hopeful technological solutions due to the shortage of perception of the actual value of the invention.

3. Research methodology and methods

To assist in highlight on the dissertation perspective, from the global climate change and its influence between economic and social concern, to the process of decision making in renewable energy investment with the relation of financial resources and approach have been taken in account within the literature review.

Accordingly all these above component will be discussed and developed under a theoretical frame work perspective. In this research, the Author will use a theoretical background which is crucial to understand and set the tone of dealing with a discussion topic or a research subject. For the current research the Author believes a theoretical approach from an organizational development theory as well as leadership theories point of view is important particularly because they offer the necessary academic input to allow the research to be focused on specific research directions. At the same time, the specificities of the two types of theories affect and influence the way in which the research is conducted.

According to Glanz, Rimer, and Viswanath. (2008.), organizational development implies a deep consideration for the study and practice of the way in which performance can be improved through human interaction and change. It is an area of research focused on the elements that ensure a better interaction between people and parts of an organization that in the end allows for an increased overall functionality.

For this research, an important leadership theory is that of the transactional leadership. This type of leadership focuses on the role of the individual, the higher organization and the overall performance of that organization or group. More precisely, the transactional theories focus on a leader approach which implies three different roles needed for development. Thus, the role each individual plays is crucial, but eventually surpassed by the role of the organization he or she is part of, whether this is a department or a company all together

The author will use a process of triangulation method in order to tutor the same question’s research which has been raised earlier through both qualitative and quantitative methodologies. The thought behind triangulation in largely linked with the measurement practices in behavioral and social research. Denzin (1970) prolonged the thought of triangulation beyond its traditional frame with research designs and methods. The author differentiates 4 forms of triangulation:
a. Data Triangulation
b. Investigator Triangulation
c. Theoretical Triangulation
d. Methodological Triangulation