Financing a sustainable future: The attitude of Dutch savers towards green saving products

Abstract

To stay below the 2C temperature rise agreed upon in the Paris Agreement, technological innovations need to be implemented regarding energy efficiency and the reduction of carbon emissions for example. To realize the implementation of these large projects, funds are needed. The savings market can potentially be a source of money to fund these projects. Statistics show that only a fraction of the Dutch population has its funds diversified in alternate saving products such as term deposits, next to their conventional saving account. This research will try to determine the attitude of the Dutch saver towards alternate saving products and specifically towards green saving products. Green saving products are saving products where the funds are invested exclusively in green projects that generate climate or other environmental benefits. This differs with conventional saving products where funds can be invested in anything (including weapons and drugs e.g.). By conducting a survey (discrete choice) among Dutch savers we identified the main product related factors for individuals to select green saving products (Interest Rate, Investment Focus and Bank Reputation). Demographic background identified non-product related attributes for respondents to select green saving products (Educational Background, Financial Stability and Environmental Friendly View). The intention to purchase or open a green saving account is present, but the actual behavior regarding green saving is lagging.