Crowdfunding for renewable energy in emerging markets: an exploratory study.

Menyeh, Bridget; Acheampong, Theophilus

Abstract

Crowdfunding has emerged as a viable tool in the alternative finance industry to complement financing for projects where government and bank investments have been unable to cover including in renewable energy. Nevertheless, the crowdfunding literature on developing countries, especially in Africa, remains scanty and little is known about its potential to contribute substantially to the financing of renewable energy from an investment perspective rather than a philanthropic one. In this paper, we close the loop around the mechanics and dynamics of crowdfunding by investigating crowd perceptions in a developing country context using Ghana as a case study. We employ integrative literature review anchored on collective action, social proof, network and signalling theory, backed with critical focus groups interviews of household retail investors to distil the key issues and concerns relating to crowdfunding for renewables. We then propose a conceptual framework based on the findings. Our findings demonstrate that an unfair playing field exists on financial returns between renewable energy and investment alternatives available to the crowd. Hence, the crowdfunding landscape will require deliberate design to improve attractiveness around non-financial attributes such as developer/fundraiser reputation and project viability to further strengthen project economics.

Citation

MENYEH, B. and ACHEAMPONG, T. 2023. Crowdfunding for renewable energy in emerging markets: an exploratory study. Presented at the 2023 World sustainability conference: harnessing the intersection of food, water, and energy for a sustainable future, 22 November 2023, Birmingham, UK: [virtual].

• Presentation Conference Type: Lecture
• Conference Name: 2023 World sustainability conference: harnessing the intersection of food, water, and energy for a sustainable future
• Conference Location: Birmingham, UK: [virtual event]
• Start Date: Nov 22, 2023
• Deposit Date: Nov 23, 2023
• Publicly Available Date: Dec 18, 2023
• Keywords: Renewable energy; Sustainable energy; Finance; Industry; Crowdfunding; Investment
• Public URL: https://rgu-repository.worktribe.com/output/2152963