The role of trust, information and legal stability in the development of renewable energy: the analysis of non-economic factors affecting entrepreneurs' investments in green energy in Poland

The aim of the article is to analyse the factors influencing entrepreneurs' decisions about investing in renewable energy. It outlines a number of different factors that may affect the process of transforming entrepreneurs into business prosumers, who thus want to limit the effects of rising energy prices. The article defends the thesis that in addition to the economic, technological and psychological dimensions, legal and political stability, access to reliable information and the level of trust in a given society are equally important. Based on the quantitative research results, the article indicates which elements are particularly important for entrepreneurs when making decisions about investing in renewable energy and which institutions are indicated by Polish entrepreneurs as responsible for implementing energy transition. The article also indicates that information about the possibility of receiving funding from the European Union and the government, the government's energy policy and technological possibilities is important for entrepreneurs' decisions about investing in renewable energy in Poland. It is always difficult to implement sustainable development goals without an atmosphere of trust and predictable legal stability in which entrepreneurs can run their businesses.

Supplementary Information

The online version contains supplementary material available at 10.1007/s10668-023-03400-z.

Review on Efficiency and Anomalies in Stock Markets

The efficient-market hypothesis (EMH) is one of the most important economic and financial hypotheses that have been tested over the past century. Due to many abnormal phenomena and conflicting evidence, otherwise known as anomalies against EMH, some academics have questioned whether EMH is valid, and pointed out that the financial literature has substantial evidence of anomalies, so that many theories have been developed to explain some anomalies. To address the issue, this paper reviews the theory and literature on market efficiency and market anomalies. We give a brief review on market efficiency and clearly define the concept of market efficiency and the EMH. We discuss some efforts that challenge the EMH. We review different market anomalies and different theories of Behavioral Finance that could be used to explain such market anomalies. This review is useful to academics for developing cutting-edge treatments of financial theory that EMH, anomalies, and Behavioral Finance underlie. The review is also beneficial to investors for making choices of investment products and strategies that suit their risk preferences and behavioral traits predicted from behavioral models. Finally, when EMH, anomalies and Behavioral Finance are used to explain the impacts of investor behavior on stock price movements, it is invaluable to policy makers, when reviewing their policies, to avoid excessive fluctuations in stock markets.

The neuroscience of investing: fMRI of the reward system

Functional magnetic resonance imaging (fMRI) has proven a useful tool for observing neural BOLD signal changes during complex cognitive and emotional tasks. Yet the meaning and applicability of the fMRI data being gathered is still largely unknown. The brain's reward system underlies the fundamental neural processes of goal evaluation, preference formation, positive motivation, and choice behavior. fMRI technology allows researchers to dynamically visualize reward system processes. Experimenters can then correlate reward system BOLD activations with experimental behavior from carefully controlled experiments. In the SPAN lab at Stanford University, directed by Brian Knutson Ph.D., researchers have been using financial tasks during fMRI scanning to correlate emotion, behavior, and cognition with the reward system's fundamental neural activations. One goal of the SPAN lab is the development of predictive models of behavior. In this paper we extrapolate our fMRI results toward understanding and predicting individual behavior in the uncertain and high-risk environment of the financial markets. The financial market price anomalies of "value versus glamour" and "momentum" may be real-world examples of reward system activation biasing collective behavior. On the individual level, the investor's bias of overconfidence may similarly be related to reward system activation. We attempt to understand selected "irrational" investor behaviors and anomalous financial market price patterns through correlations with findings from fMRI research of the reward system.