Conceptual Framework: Understanding the Influence of Monetary and Fiscal Policies on Investor Behavior in China’s Renewable Energy Sector

This conceptual study explores the theoretical underpinnings and implications of monetary and fiscal policies on investor behaviour within the context of China’s renewable energy sector. While empirical data analysis is not part of this study, it lays the groundwork for understanding the potential mechanisms through which policies may influence investor decisions. Drawing from established theories in behavioural finance, this study examines how monetary policies, including interest rates, money supply, and exchange rates, may impact herding behaviour and risk aversion among investors. It also delves into the potential effects of fiscal policies, such as taxation rates and government spending, on investor risk perceptions and decision-making processes. It also underscores the importance of considering the psychological and behavioural aspects of investor responses to policy changes in the renewable energy sector. This study offers a theoretical framework for future empirical research and policy analysis in this domain.