Financing energy sustainability through crowdfunding

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GRØN DYST 2014 Technical University of Denmark

Financing energy sustainability through crowdfunding
Paper
Author:J. Kajan (Marketing, Aalto University School of Business, Finland)
J. Lindgren (Applied Physics, Aalto University School of Science, Finland)
Date: 2014-06-27     Track: Main     Session: 1

As people are becoming increasingly aware of the environmental problems related to the use of fossil fuels to generate electricity, they have begun seeking ways to support energy sustainability. We propose that crowdfunding as an emerging funding mechanism, is applied to harness resting capital and increase general interest in green energy. The methods of crowdfunding (Belleflamme, Lambert & Schwienbacher, 2013), i.e. engaging small-scale investors, could be employed not only to fund sustainable energy projects but also to increase general energy awareness, reduce local NIMBY (Not In My Backyard) resistance to e.g. wind turbine projects and also distribute the ownership of energy. The goal of this initiative is to study the feasibility of the crowdfunding concept and design a web service for its implementation. This will include e.g. studying functionalities of debentures and related consumer behavior.