Impact of Market Sentiment on Green Valuations

As global financial markets continue their transition toward sustainability, understanding how environmental assets are valued has become an increasingly important area of inquiry. While considerable attention has been given to sustainable investing, green finance, and ESG performance, less is known about the role that investor perceptions and market sentiment play in shaping investment decisions and asset valuations. These human and psychological factors can significantly influence how markets respond to sustainability-related information, opportunities, and risks. At the same time, growing interest in environmental assets and sustainable investment products has created a need for deeper insights into the relationship between investor behavior and green market dynamics. Exploring this intersection offers valuable opportunities to strengthen both theoretical understanding and practical decision-making in sustainable finance. Impact of Market Sentiment on Green Valuations investigates the intersection of green finance, investor sentiment, and stock market behavior, examining how emotions, perceptions, and behavioral biases influence sustainable investment decisions and market dynamics. Through theoretical and practical case studies, this book demonstrates how sentiment aspects and sustainability principles impact market performance and financial decision making, ultimately closing the gap between sustainable investment research and behavioral finance by offering interdisciplinary viewpoints that combine environment policy, psychology, finance and economics. Covering topics such as climate-aligned green finance mechanisms, greenwashing detection, and regulatory technology, this book is an integral academic resource for graduate and doctoral students, investment professionals, portfolio managers, financial analysts, Financial institutions, asset management firms, regulators, policymakers, and more.