Intention towards renewable energy investments in Malaysia: extending theory of planned behaviour

Renewable energy investments possess great potential for reducing the consumption of fossil fuels influenced by various determinants. This study investigates the individual investors’ renewable energy investments’ intention within the framework of the theory of planned behaviour (TPB) based on a survey conducted in 3 major states in Malaysia. The results indicate that one’s intention to invest in renewable energy investments is influenced by attitude, subjective norm, perceived behavioural control and evaluation of regulatory framework. Risk aversion on the other hand was found to have no effect on investors’ intention towards such investments. The findings also reveal that the evaluation of regulatory framework is the most important determinant. This outcome contradicts the outcomes arrived at by the previous studies that focus on investment behaviours or other types of pro-environmentally intention or behaviours. This research also investigates the indirect effects of TPB on explaining investor’s intention towards renewable energy investments through the evaluation of regulatory framework. The results indicate that the investors’ intention towards renewable energy investments is indirectly influenced by attitude and perceived behavioural control. Subjective norm does not have an indirect effect on investors’ intention towards renewable energy investments. This study provides policymakers’ important practical implications to improve renewable energy investments.