The Impact of Cognitive Biases and Psychological Strategies on Sustainable Investment Choices

This chapter explores the influence of cognitive biases and psychological strategies on sustainable investment choices. It highlights key biases such as loss aversion, confirmation bias, and herding behavior, examining their impact on decision-making in sustainable finance. The chapter also delves into the role of psychological strategies, including nudging, goal framing, and psychological pricing, in promoting green investments. By integrating behavioral finance with sustainable investing, it offers insights into how biases and strategies can be harnessed to encourage environmentally responsible financial behaviors and drive sustainable market growth.